Beverly Hills luxury watch consignment store owner admits fraud

LOS ANGELES, Calif. — A Los Angeles man who previously ran a business known as Gentleman Timepieces in Beverly Hills pleaded guilty Friday to defrauding customers in his luxury watch consignment business.

Anthony Farrar, 36, formerly of downtown Los Angeles, pleaded guilty in federal court to one count of wire fraud and one count of mail fraud, according to the U.S. Attorney’s Office.

Prosecutors say Farrar founded the company in Texas in 2017, opened a store in Beverly Hills in 2022, and used the business to connect buyers and sellers of luxury watches. According to court documents, he typically received watches from individuals and had them sign a consignment agreement stating that he would collect a commission of typically 5% from the sale.

Federal prosecutors allege Farrar defrauded his victims between November 2022 and November 2023 by promising them luxury watches on consignment. According to the plea agreement, he kept the proceeds for himself rather than transferring the funds, minus fees, to his customers.

According to court documents, multiple victims contacted law enforcement and sent Mr. Farrar money to purchase the watches or mailed them on consignment, but the watches were never paid for and the watches were shipped to Mr. Farrar. They also reported that it was not returned. Investigators have so far estimated losses for about 40 victims at more than $5.6 million.

Prosecutors said Farrar lived in luxury rental properties, was known to drive Lamborghini and Ducati motorcycles, and frequently traveled to Las Vegas to gamble.

According to the U.S. Attorney’s Office, Farrar induced the victim to transfer funds to purchase a luxury watch, and instead of purchasing the agreed-upon watch, he sent her another watch.

In one incident, the victim received a Rolex watch from Farrar in exchange for money owed to him, but the Rolex belonged to another victim who had provided the watch to Farrar on consignment. and did not allow Farrar to use the watch as payment. Prosecutors said he owed money to other victims.

Prosecutors say Farrar used tactics similar to Ponzi schemes, lulling his victims into a sense of security by making small successful transactions before soliciting or engaging in much larger transactions. It is said that

Farrar apparently abandoned the Beverly Hills store last year and began posting on social media about her travels around the United States. According to the criminal complaint, Farrar continued to advertise watches for sale on social media platforms in October 2023, a month before his arrest.

Federal prosecutors said U.S. District Judge Josephine L. Staton has scheduled a sentencing hearing for Jan. 31, at which point Farrar could face up to 40 years in federal prison. pointed out.

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