Swiss luxury watchmaker Omega has accused three former employees of taking part in a criminal scheme that led to the sale of a fake Omega Speedmaster at an auction for over $3 million. The watch, a 1957 Omega Speedmaster with "Broad Arrow" hands, was actually a "Frankenstein" creation composed of parts from other vintage watches, according to Omega's statement to Bloomberg. The watch sold for just over 3.1 million Swiss francs ($3.3 million) at an auction by Phillips in November 2021. Omega confirmed that it purchased the watch.
This scandal highlights concerns over forgeries and alterations of vintage watches sold through the secondary market and at auctions, which allow forgers to achieve higher sale prices. Collectors are willing to pay millions of dollars for certain watches in good condition with authentic parts.
One former employee of the Omega Museum and its brand heritage department is among the staff accused of taking part in the alleged criminal activity, according to the company. This employee worked alongside intermediaries to purchase the watch for Omega's museum, claiming it was a rare and exceptional timepiece that would make an excellent addition to their collection. However, Omega now alleges that the watch was a sophisticated forgery comprising parts from various timepieces, including potentially fabricated parts, and that the former employees may have been involved in its assembly.
Omega has not named the former employees whom they believe took part in this scheme. The company has said, "Its false legacy allowed the profiteers to justify a highly inflated bid made through the intermediaries," and that the scheme was "to the massive detriment of Omega." Omega CEO Raynald Aeschlimann told Swiss newspaper NZZ that the scam was harmful to the company.
An Omega spokesperson stated that they do not know who brought the watch to Phillips for sale at the auction. Phillips has also not disclosed the identity of the seller due to client confidentiality rules, but they would reveal it if asked by the authorities. When Phillips consigned the watch and went to Omega for information from its archives, they were unaware of the alleged criminal activity. The auction house authenticated the watch's movement, serial number, model and date of manufacture with Omega. they stated that the watch was viewed by collectors, scholars, and experts and traveled to London, Singapore, Hong Kong, and New York before being auctioned in Geneva.
Phillips has stated that they are committed to following the highest standards and due diligence levels in the watch market, and that if their investigation reveals criminal activity, they will not hesitate to refer the matter to the authorities for prosecution.
Omega is best known for its Speedmaster and Seamaster models. According to Morgan Stanley estimates, it is the third-largest Swiss watchmaker by revenue, with sales of approximately 2.47 billion francs in 2022. The brand is part of Swatch Group AG and accounts for approximately 50% of the company's overall watch sales.