State of California Department of Justice
Rob Bonta
Attorney General
Attorney General
LOS ANGELES — California Attorney General Rob Bonta today announced the dismantling of a luxury watch fraud scheme and felony charges filed against a local jewelry store owner accused of swindling 22 victims out of hundreds of thousands of dollars for Rolex watches that never existed. The total loss to victims is nearly $1.5 million with the conduct spanning multiple years, occurring in Orange and Los Angeles Counties.
“When corrupt individuals orchestrate complex schemes to siphon away people's hard-earned money, my office will act swiftly,” said Attorney General Bonta. “Those who manipulate the rules to enrich themselves at the expense of others will always be held accountable. Our mission at the California Department of Justice remains unwavering. We will continue to investigate, expose, and dismantle financial crimes and fraud across California to ensure a fair marketplace for everyone.”
The jeweler repeatedly ran a luxury watch scam by targeting buyers who wanted to purchase high-end Rolex models valued between $50,000 and $100,000. He would falsely promise these clients that he could source the requested watches through his overseas brokers, convincing them to wire the full purchase amount upfront into his business bank accounts. Although the victims were promised a delivery window of four to six weeks, the watches never arrived, and the jeweler offered endless excuses and reassurances as the weeks turned into months. When buyers finally demanded their money back, the jeweler agreed to issue refunds but ultimately pocketed the cash, leaving most victims without their money.
In addition to individuals, the jeweler also defrauded a watch distributor who lost over $400,000 after selling high-end watches to the jeweler but never receiving payment. The California Department of Justice (DOJ) is prosecuting the case, and the charges include grand theft, writing a fraudulent check, with white-collar crime enhancements. DOJ received significant assistance from the Newport Beach Police Department in the investigation.
It is important to note that a criminal complaint contains charges that are only allegations against a person. Every defendant is presumed innocent until proven guilty.
Here is a copy of the criminal complaint.