A prominent businessman from Beverly Hills, known as the "Timepiece Gentleman," was arrested by FBI agents earlier this week for his alleged involvement in a sophisticated wire fraud scheme that swindled customers out of an estimated $3 million, according to federal prosecutors. The accused, Anthony Farrer, 35, was apprehended at a storage facility in Venice a day after being charged with wire fraud.

The criminal complaint filed by the U.S. Attorney's Office in the Central District of California asserts that Farrer operated a Ponzi-like scam through his luxury watch consignment store, "Gentlemen Timepieces," from late 2022 to the summer of this year. The scheme involved collecting luxury watches from sellers and persuading them to sign consignment agreements that entitled him to a 5% commission upon resale. Instead of returning the proceeds to his customers, Farrer allegedly used the funds to support his extravagant lifestyle, including residing in a luxurious rental property, driving exotic cars such as a Lamborghini and owning Ducati motorcycles. He was also known for his frequent trips to Las Vegas for gambling purposes.

The complaint further reveals that Farrer would deceive buyers by having them wire funds for the purchase of specific luxury watches, only to send them different models from what they had intended to buy. In one instance, a victim received a Rolex watch from Farrer as repayment instead of the owed money. Shockingly, it was found that the Rolex was actually owned by another customer who had entrusted Farrer to sell it on consignment, but had never authorized its use as payment for debts owed to other victims.

Numerous individuals came forward to report their experiences of sending money or watches to Farrer for purchase or consignment, only to be left unpaid or without their watches, leading to an estimated loss of $3 million for the victims, as per law enforcement estimates.

In August, Farrer abruptly abandoned his flagship Beverly Hills store and began flaunting his travels on various social media platforms. He even continued advertising watches for sale on these platforms as recently as last month, according to the complaint.

Farrer made his initial court appearance on Wednesday, and his arraignment is scheduled for December 14. It remains uncertain whether he has retained legal representation. If convicted on the charge of wire fraud, Farrer faces a maximum sentence of 20 years in federal prison.

This case serves as a stark reminder of the risks associated with online transactions and the importance of due diligence when engaging in consignment deals. Law enforcement authorities are urging anyone who believes they may have been victimized by Farrer to come forward and cooperate with the ongoing investigation.

The article has been generated based on the information provided and does not contain any speculative or additional details.