An Omega Frankenstein €3.2M later and Heisenberg's observer principle
A vintage Omega Speedmaster sold for a record price at auction is currently the subject of an investigation into alleged criminal activity by three former Omega employees. The watch, an Omega Speedmaster tropical ref. 2915-1 "Broad Arrow", originally made headlines when it sold for a record 3.2 million euros at Phillips in November 2021.
The news broke in April, when José Pereztroika (Perezcope) published his findings on the tropical Speedmaster. But on 1 June, a report in the Zurich newspaper Neue Zürcher Zeitung (NZZ) detailed a series of criminal events that led to a "Frankenstein" watch, made from disparate parts of several old Speedmasters, appearing at auction. Omega stated that the watch was the object of an organised criminal effort by a group of conspirators, including three former employees, among them the former head of the Omega Museum and Brand Heritage. In separate statements, both Phillips and Omega said they were joint victims of organised criminal activity. Below is Omega's official statement, translated into Portuguese by the IPR.
OMEGA'S STATEMENT
OMEGA and Phillips were joint victims of an organised criminal activity involving the sale of this specific watch at auction.
At the auction, organised by Phillips, the Head of the OMEGA Museum and Brand Heritage worked together with intermediaries to buy the watch for the OMEGA Museum, arguing that it was a rare and exceptional watch that would be absolutely indispensable to OMEGA's exhibition collections and should therefore be bought at this auction at any cost.
In fact, the watch is an assembly of mostly authentic OMEGA components, commonly called a "Frankenstein" watch. This watch is now a key piece in the ongoing investigation, which should also bring to light the seller of the watch.
Its false legacy allowed the speculators to justify a highly inflated bid made through the intermediaries, which enabled those involved to collect and distribute the profits generated by the sale.
At present, three former employees (including the former Head of the OMEGA Museum and Brand Heritage) have admitted to the events when confronted during an internal OMEGA investigation, which is active and ongoing. OMEGA is filing formal charges against everyone involved.
TIMELINE OF EVENTS
To better understand what happened, here are the main news reports published on the subject.
9 April - Perezcope
«In November 2021, an old Omega Speedmaster Ref. 2915-1 'Broad Arrow', with a stunning tropical dial, went supersonic at a Phillips auction in Geneva, reaching a face-distorting G-force of CHF 3,115,500, including buyer's premium. An all-time record for an Omega. The previous record-breaking Speedmaster had reached "only" CHF 408,500. As with many of the multi-million lots hammered by top auctioneer Aurel Bacs, the watch is an assembly, a Frankenstein watch that did not leave the Omega factory like that. Shortly after the auction, the rupture parachute was quickly deployed when photographs of the watch surfaced in Omega circles, showing it with greenish lume, different hands, a different bezel and a much later movement. Those in the know were frightened, as rumours had it that the individuals involved were allegedly members of a potentially violent gypsy clan. A perfect case for Perezcope, I would say.
(...)
Although it seems the criminal justice system will seek to bring this cast of actors to justice, perhaps this series of events will draw attention to the vulnerabilities of the current structures and institutions in place and perhaps bring some much-needed transparency to the world of vintage watches and watch auctions.»
1 June - Neue Zürcher Zeitung
On 1 June, a report in the Zurich newspaper Neue Zürcher Zeitung (NZZ) detailed a series of criminal events that led to a "Frankenstein" watch made from disparate parts of several old Speedmasters appearing at auction. Omega stated that the watch was the object of an organised criminal effort by a group of conspirators, including three former employees, among them the former head of the Omega Museum and Brand Heritage. In separate statements, both Phillips and Omega said they were joint victims of organised criminal activity.
7 June - Bloomberg
«Swiss watchmaker Omega alleged that three former employees were involved in a criminal conspiracy that resulted in the sale of a fake Speedmaster at auction for more than 3 million dollars.»
8 June - Fratello Watches
«You may have seen the news about the Frankenstein Speedmaster CK2915 that was hammered for 3.3 million US dollars. It was supposedly a fully authentic first-generation Omega Speedmaster in impeccable condition, with a tropical dial. It was the highest price ever, as it was Omega's destiny to have it for the brand's museum in Biel, Switzerland. Or so it seemed...»
8 June - SJX
«Earlier this week, the leading Swiss-German newspapers Neue Zürcher Zeitung (NZZ) published a long article on the possible fraud behind the record sale of an Omega Speedmaster ref. 2915-1 at Phillips in 2021.
Mysterious at the time, the result of 3.12 million Swiss francs was an enormous number that far exceeded previous records for that particular Speedmaster. As the NZZ revealed in its story, the Speedmaster in question was a "Franken" watch assembled from assorted vintage components - and some fake parts - and was bought by Omega itself, on the advice of its then museum director.
The allegations are that the then museum director was in collusion with the seller of the watch. Omega went to the police and also issued a statement, saying, in part, that "Omega and Phillips were joint victims of an organised criminal activity involving the sale of this specific watch at auction".»
9 June - Hodinkee (Omega retailer)
«(...) The simple explanation for the alleged actions of those involved is that too much money and power were placed in the hands of too few individuals, without any real oversight or obligation of transparency. It remains to be seen whether other circumstances were at play, but whatever the case, these alleged bad actors were able to exploit this situation to their own advantage. Although it seems the criminal justice system will seek to bring this cast of actors to justice, perhaps this series of events will draw attention to the vulnerabilities of the current structures and institutions in place and perhaps bring some much-needed transparency to the world of vintage watches and watch auctions.»
DESCRIPTION OF PHILLIPS LOT 53
Here is the original description of Phillips lot 53: Omega Speedmaster tropical ref. 2915-1 "Broad Arrow".
Ref. 2915-1 An early and important stainless steel chronograph wristwatch with Broad Arrow hands and chocolate brown "tropical" dial
1957
38mm Diameter
Case, dial, movement and buckle signed
Estimate
CHF80,000 - 120,000
€74,800-112,000
$87,100-131,000
SOLD FOR CHF3,115,500
OUR OBSERVATION OF THE EVENTS
With the steady rise in the prices of vintage watches at auction, this is becoming an ever more tempting world for scams and swindles. In this more aggressive scenario than ever, brands and their representatives are obliged to improve their communication, which must be transparent, effective and, of course, always with the best possible timing.
With Perezcope's forceful action on the authenticity of auctioned watches, auction houses face an enormous threat to their credibility. This threat may result in a drastic reduction in turnover or, in fact, in media exposure that is disadvantageous in the short term but very advantageous in the long term.
After the enormous exposure of this case, auction-house clients will very probably start to feel more insecure, which may hold them back from taking part in future auctions. On the other hand, the spotlight on the activity of these auction houses may give them the exposure needed to gain more clients. These are two possible futures for a situation that is hard to predict.
We all have the clear idea that merely observing an event does not change it. Well, physicists, and probably Perezcope, disagree.
HEISENBERG'S SURPRISING OBSERVER PRINCIPLE
Heisenberg's observer principle is a theory of quantum physics which states that the mere observation of a subatomic particle can affect its position and velocity, making it impossible to measure both properties precisely at the same time. In other words, the more precisely a particle's position is measured, the less precisely its velocity can be measured, and vice versa. This principle is one of the foundations of quantum uncertainty and has profound implications for our understanding of the nature of physical reality.
Just as in this Heisenberg principle, observing a media phenomenon changes it. Perezcope deserves a great deal of credit for having observed this tropical Omega, as well as for the exhaustive work he has been doing in assessing some auctioned watches over the last few years. This is a good example of an observation changing a phenomenon. Watch auctions have a lot to be observed these days; we are all observers and we all have the ability to change events, simply by observing them.
YOUR OBSERVATION
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