Omega, the Swiss luxury watchmaker, has revealed that it fell victim to an "organized criminal activity" involving the sale of a counterfeit Speedmaster watch. The company alleges that three former employees collaborated with intermediaries to sell the fake timepiece for approximately $3.4 million. Omega had initially acquired the watch for 3.115 million Swiss francs at a Phillips auction in Geneva in November 2021, a price significantly higher than the auctioneer's estimate.
According to Omega, the intention was to display the watch at its museum in Bienne, Switzerland, as it was believed to be a rare and exceptional timepiece worthy of inclusion in the showcase collections. Described by Phillips as one of the earliest and most sought-after Speedmaster models—a 1957 stainless steel chronograph wristwatch with Broad Arrow hands—the watch was later discovered to be an assemblage of mostly authentic Omega components, earning the moniker of a "Frankenstein" watch.
Omega asserts that both the company and Phillips were victims of organized criminal activity linked to the auction sale. The false perception surrounding the watch allowed the perpetrators to justify an inflated bid made through intermediaries, enabling them to profit from the transaction. The timepiece now stands as a crucial piece of evidence in an ongoing investigation aimed at identifying the seller.
Omega disclosed that three former employees have confessed their involvement in the events under scrutiny during an internal investigation. Criminal charges are being pursued against all parties implicated. Phillips, the auction house responsible for the sale, expressed deep concern about being unwittingly embroiled in the criminal activity. They stated their commitment to upholding high standards and pledged full cooperation with authorities during the investigation and prosecution of the offenders.
Phillips also confirmed that if requested by legal authorities, they would cooperate in disclosing the identity of the seller involved in the illicit transaction. The case serves as a reminder of the ongoing challenges faced by luxury brands in combating counterfeit goods and the importance of thorough authentication processes to ensure the integrity of high-value collectibles.