What did Anthony Farrer do? Beverly Hills “Gentlemen Timepieces” founder arrested over alleged Ponzi scheme

On November 7, 2023, 35-year-old Anthony Farrer, who formerly operated a business in Beverly Hills known as "Gentlemen Timepieces," was apprehended by the Federal Bureau of Investigation on charges of defrauding customers of his luxury watch consignment business.

A press release from the U.S. Attorney's Office, Central District of California, stated that Anthony, also known as "The Timepiece Gentleman," was charged with wire fraud in a federal criminal complaint filed on November 7, 2023.

According to the press release from the U.S. Attorney's Office, Central District of California, the federal criminal complaint reportedly states that Anthony Farrer conducted something very similar to a Ponzi scheme.

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Anthony Farrer defrauded about $3 million from his clients

According to the press release from the U.S. Attorney's Office, Central District of California, Anthony Farrer established the company in Texas in 2017 and set up a branch in Beverly Hills in 2022.

He utilized this company to connect high-end watch buyers and sellers. He would often acquire a watch from a person and have them sign a consignment agreement, stating that he received a commission on the sale, usually 5%.

A Ponzi scheme is a type of fraud in which funds from more recent investors are used to pay profits to previous investors.

The press release from the U.S. Attorney's Office, Central District of California, read:

"The complaint further alleges that 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."

U.S. Attorney's Office, Central District of California, reported that Anthony Farrer began defrauding victims in late 2022 until the summer of 2023 when he offered to sell their expensive timepieces on consignment. He pocketed the proceeds rather than remitting them to the clients without the commissi

According to the press release from the U.S. Attorney's Office, Central District of California, the federal criminal complaint alleges that Anthony conned victims into wiring funds in exchange for luxury watches, only to send them a different watch instead of the one agreed upon.

Several victims reported to authorities that they made payments to Anthony for the purchase of a watch or sent him a watch to consign for sale but were never paid or received their watch back.

In one such instance, Anthony Farrer sold a victim a Rolex watch. However, the Rolex belonged to another victim who had given the watch to Anthony to sell on consignment and had not authorized Anthony to use the item to settle his obligations to other victims.

The press release from the U.S. Attorney's Office, Central District of California, mentions that authorities estimate that, till date, victim losses presently add up to approximately $3 million.

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Anthony Farrer lived a luxurious life prior to his arrest

The press release from the U.S. Attorney's Office, Central District of California, mentioned that Anthony Farrer resided in a high-end rental. He was known to ride a Lamborghini and a Ducati motorcycle and visited Las Vegas regularly and gambled there.

In August 2023, Anthony left the Beverly Hills store and started posting about his different travels throughout the United States on social media.

Even in October 2023, Anthony advertised watches for sale on his social media platforms.

Los Angeles Times reported that on August 2, 2023, Anthony Farrer posted on social media about his debts and admitted to his wrongdoing. In the video, he said:

"Spending people's money, living above my means. … I've been digging myself this hole and it's a $5-million hole. About $3 million of that debt is to two big clients of mine. One who acted as an investor and I used his money to fund my lifestyle."

According to the report by the Los Angeles Times, the person who assisted victims of this case to get in touch with the FBI, Chad Plebo, said:

"He confessed to running a Ponzi scheme and he almost does not seem to understand it. It's such a bizarre, weird story."

On November 8, 2023, Anthony made his initial appearance in the United States District Court and had a detention hearing the day after.

Anthony Farrer is currently being held at the Metropolitan Detention Center in Los Angeles, with his arraignment slated for December 14, 2023. If convicted, he can face a statutory maximum sentence of 20 years in federal prison.