Luxury Watch Consigner Accused Of 'Ponzi-Type Scheme' In Beverly Hills

BEVERLY HILLS, CA — A Los Angeles man has been accused of defrauding customers of his former Beverly Hills-based luxury watch consignment business in a "Ponzi-type scheme," according to the U.S. Attorney's Office.

Anthony Farrer, 35, was charged Monday with wire fraud. He appeared in court for the first time Wednesday. He's set to be arraigned on Dec. 14.

Prosecutors' estimate that Farrer's victims' losses total $3 million. Authorities are in the process of identifying additional victims, prosecutors said.

Known as "The Timepiece Gentleman," Farrer opened a location in Beverly Hills in 2022 after founding the company in Texas in 2017. His work involved connecting purchasers and sellers of high-end watches through consignment agreements that typically involved him earning a 5-percent commission on sales, according to the prosecutors.

Farrer is accused of defrauding customers between 2022 and 2023. Rather than sending money back to customers following a sale, he would keep the proceeds for himself.

In one instance, Farrer sent someone a Rolex watch instead of money he owned them — a watch owned by another victim who contracted with Farrer to sell it on consignment, according to prosecutors.

"Farrer operated a scheme in a similar manner to a Ponzi scheme and would lull victims into a sense of security by engaging in smaller successful transactions prior to requesting or engaging in significantly larger transactions," the U.S. Attorney's office said in a release.