The Scandals of Clockwork Land
Daniel PintoRecent controversies in the watch industry, such as the Omega "Frankenwatch" fraud and questions surrounding the Only Watch auction, highlight the need for transparency. Investigations reveal questionable practices, affecting the reputation of iconic brands. The watchmaking community is demanding stricter regulations.
No one in their right mind would label the watchmaking world as a raucous, scandalous, or even very exciting place. The reality is that it's generally a conservative industry where centuries-old traditions are important, decorum is abundant, and those who comprise it tend to be old-school gentlemen. After all, this is Switzerland, where everyone is in bed by 8 p.m. Even so, it hasn't been without its scandals and explosive controversies, those moments that make us all turn around and opine on shocking events that shake the industry from time to time. In fact, in the last year, we've already had two juicy controversies that have filled the covers of watchmaking publications and our social media feeds. Here, we'll tell you about these and other older controversies that are worth remembering, learning about in detail, and, of course, judging from your perspective.
In the midst of last year's auction season, Phillips listed an interesting first-generation Omega Speedmaster CK2915 with an estimated sale price of between 80,000 and 120,000 CHF. Once the hammer fell, the room was in shock. The all-time record price for a Speedmaster had just been reached, with Omega itself purchasing the watch for over 3,000,000 Swiss francs after a heated bidding war. In this industry, it's very common for brands to purchase their iconic vintage watches at auction, usually to display them in their museums or to preserve and control the sale value of their pieces on the secondary market, thus raising the brand's overall prestige and supporting the sale of new models. With this result, Omega and all of Bienne were all smiles. For the first time, Omega had managed to secure a model alongside Rolex and Patek in the select club of vintage pieces that exceed one million dollars.
However, neither Philips nor Omega reckoned with the astuteness of cyberspace and its intrepid surfers. Several watch bloggers began to question the authenticity of the watch, arguing that it appeared to have been assembled from various parts of other watches. When the topic gained some momentum, our favorite horological detective entered the scene: José Perestroika. The infamous @perezcope investigated thoroughly and discovered that it was indeed a "Frankenwatch" constructed from various parts of 1957 Speedmaster watches. The truly scandalous part of the story is that those guilty of the fraud were Omega employees who, through the director of the brand's museum, managed to obtain the parts to assemble this watch, then consign it to the auction house and subsequently profit from the inflated and fraudulent sale of the supposed grail. Of course, Omega denied any knowledge of the incident and took immediate action against those responsible. In any case, the damage was done, and the brand's prestige has been greatly undermined by this scandal.
It is not yet known whether Philips or Omega will file criminal charges against the confessed culprits. What seemed like a fairy tale for our beloved Speedy ended up being a nightmare worse than Apollo 13, but pure gold for the online watch community, which uncovered the fraud and once again exposed the often negligent and shady practices of Swiss auction houses.
While Omega's 3 million Swiss francs is a lot of money to have embezzled, it doesn't even begin to tickle the more than 50 million Swiss francs currently being questioned from the once-admired Only Watch Foundation. Founded by Luc Petavino, the father of a teenager who died of Duchenne Muscular Dystrophy Syndrome, this foundation has been operating since 2005, raising funds through its Only Watch auction, a biannual event where the world's most renowned brands donate a unique watch to be auctioned off to the most powerful collectors. It's the most media-focused event of the year, where record prices for watches sold at auction have been set in history, and where many of the brands even debut new technologies or movements (we'll never forget the "hand" of FP Journe, created after an idea by Francis Ford Coppola).
At the end of last year, as we were preparing for a new version of the auction, voices from watchmaking forums once again questioned the use of the funds the Foundation had been providing since its inception. They demanded to know why, of the more than CHF 100,000,000 raised since 2005, only half had been distributed in scholarships and direct contributions to research against the disease, and why, of these distributed funds, the majority had gone to a company called SQY Therapeutics, which in turn was owned by AMM, the Foundation of which Luc Petavino is the director. Many believe that Petavino has been using auction funds to finance a lifestyle full of luxury and excess, and they also question the criteria by which funds are allocated to various researchers and research laboratories.
After a rather terse response from the Monaco Group to questions about its integrity, the blow came. Audermars Piguet announced its withdrawal from the auction, and several other brands also withdrew their watches. Only the public support of FP Journe and the continued presence of Patek Philippe managed to save the auction, which had to be postponed from November 2023 to May 2024. Even with all these scandals, the auction raised nearly CHF 30,000,000, with Patek being the largest contributor with a minute repeater that raised more than 50% of the entire auction's funds. Currently, there are no laws in Monaco that allow for the oversight of foundation expenditures, but a law requiring these foundations to disclose their corporate governance, use of funds, and remuneration criteria for their directors is expected to be formalized in 2024. Let's hope Only Watch can clear its name and retain its status as the most important charity event in watchland.
Some things only happen behind the Iron Curtain. Vladimir Putin's world is not exempt from watchmaking controversies. Back in 2009, a meeting was arranged between the head of the powerful Russian Orthodox Church, Kirill, and one of the regime's ministers at the time. So far, nothing unusual or horologically relevant to report. The problem arises when photos of that meeting appear on official social media, revealing a curious visual effect. The ever-astute internet users noticed that although Kirill appeared in the photo sitting without a watch, the reflection of his hand on the wooden table clearly showed a gold watch on his wrist.
Once the image was reconstructed, it was clear that the religious leader was wearing a beautiful yellow gold Breguet Classic, priced at around $30,000, a figure considerably higher than the annual salary of a religious leader. Beyond having to come out and explain the doctoring of the photo, the church was questioned for its leader's lack of tact. We've seen something similar resurface recently with Dina Boluarte in Peru, who appeared with several Rolex watches supposedly lent to her by friends, which were not mentioned in her personal asset declaration upon assuming the presidency. As you can see, even the most beautiful watch can look ugly when used out of context or without the honest pride of the collector who had to work incredibly hard to afford the pleasure of wearing it.
We'll save the last scandal on the list for our podcast, as it's a story that deserves to be listened to calmly, whiskey in hand, ideally with headphones. Don't miss the tragicomic tale involving a high-end nightclub, New York's most exclusive hotel, and an independent watchmaker who unwittingly became embroiled in a love affair. It just shows you that collectors have our wild side, too.
https://www.youtube.com/watch?v=pwJq5yWV6YoMore on the Blog
