An investigation that began with horological blogger Perezcope spotting inconsistencies in an advertised 1957 Omega Speedmaster that sold for over $3 million by Phillips in 2021 is likely to end in the arrest of three former employees for the watchmaker.
Among those former employees is the once revered head of the Omega Museum and Brand Heritage.
He and other accomplices are alleged to have been involved in “organized criminal activity” that led to the creation and sale of a fraudulently-made Frankenstein timepiece.
The Perezscope report was further investigated and covered by Swiss newspaper NZZ and made headlines around the world, causing Omega CEO Raynald Aeschlimann to say that the fraud had been “to the massive detriment of Omega.”
Omega released a statement this week saying that, along with the auctioneer Phillips, they have been joint victims of organised criminal activity involving the selling of this specific watch by auction.
“As it stands at present, there are three former employees (among them the former head of Omega Museum and Brand Heritage), who have admitted to the run of events when confronted during an Omega internal investigation, which is active and ongoing. Omega is bringing criminal charges against all involved,” a statement from the brand’s press office on June 2 says.
At the time of the sale in 2021, the watch, with its tropical dial, was described by Phillips as being among the first batch of Omega Speedmaster watches released in 1957 as part of the brand’s Trilogy of professional watches, which also included the Seamaster 300 and Railmaster. “The first generation model, reference CK2915, is considered by collectors as “the grail”. It was the first chronograph to feature a tachymeter scale on the bezel, rather than the dial — and the first Speedmaster to use the Caliber 321,” the auctioneer said.
According to NZZ, the watch’s authenticity had been verified by Omega, most likely by the Museum and Brand Heritage team.
At the auction, Omega says the then head of its Museum and Brand Heritage worked in tandem with intermediaries to purchase the watch for the museum, arguing that it was a rare and exceptional timepiece that would be an absolute must for the brand’s archive.
Omega agreed to bid whatever was required, and it is thought a number of intermediaries were organised to ramp up bidding to the final hammer price of CHF 3,115,500, a shocking result at the time given that Phillips had given the watch a pre-auction estimate of CHF 80,000 to 120,000.
Perezcope’s investigation, later verified by Omega, found that the watch is an assembly of mostly authentic Omega components brought together to make a “Frankenstein” piece that was tailormade to excite collectors at that time and make the case for it being a must-have item for the museum.
“Its false legacy allowed the profiteers to justify a highly inflated bid made through the intermediaries, which allowed those involved to collect and distribute the profits generated from the sale,” Omega’s statement says.
“This timepiece is currently a key piece of evidence in the ongoing investigation that must also bring to light the seller of the watch,” the Omega statement concludes.
Phillips, which auctioned the watch in 2021 with a pre-sale estimate of CHF 80,000 to CHF 100,00, says it is a victim of the alleged crime.
In a statement shared with WatchPro, a spokesperson for the company says:
“Concerning this Omega Speedmaster Ref. 2915-1, Omega and Phillips were the joint victims of organised criminal activity involving the selling of this specific watch by auction.
“When Phillips consigned the watch and went to the Omega archive, we were not aware of the alleged criminal activity that is now the subject of an investigation.
“Phillips obtained confirmation from Omega of the date of manufacture of the numbered movement, serial number, the model of watch that the movement was fitted to and the date it was sold.
“This confirmation was obtained by us at the time of sale of this watch. We understand representatives of Omega saw the watch before they purchased it. We believe Omega is bringing criminal charges against the perpetrators.”
There is a delicate symbiotic relationship between auction houses like Phillips and historic houses like Omega that often share information about vintage watches ahead of sales.
Details of this alleged crime have rocked that balance to its core.
That explains why Omega has moved so swiftly to terminate three employees, including its longstanding head of the Omega Museum and Brand Heritage.
It appears the response has come straight from the top, with Omega CEO Raynald Aeschlimann telling Swiss newspaper NZZ that the fraud had been “to the massive detriment of Omega.”
Both Omega and Phillips are working to ensure that damage from the scandal can be contained.
The statement from a Phillips spokesperson insists: “Buyers come to Phillips because they know we are committed to the highest standards and due diligence levels in the watch market.”
“We are therefore most concerned to discover that despite our commitment to these high standards Phillips and Omega have been the joint victims of organised criminal activity involving lot 53, the Omega Speedmaster Ref. 2915-1, which sold at auction in November 2021,” the spokesperson continues.
Phillips goes on to say that it “looks forward to seeing the outcome of Omega’s findings and will of course be cooperating in full with any resulting investigation or prosecution of the perpetrators by the authorities”.
