Watch counterfeiting – Getting to the heart of the matter (Part 3)

Having set the scene with the presentation of the various protagonists, and having established the timeline of events by following the very precise account given by the Presiding Judge, it is time to get to the heart of the matter.

Since Julien V., the principal defendant, has decided to remain silent before the court, the Presiding Judge embarks on a long monologue punctuated by spontaneous statements. We invite you to follow the next instalment of this Paris trial, which aims to judge the main suspects in an international trafficking ring for counterfeit luxury watches, organised as a criminal gang.

The Presiding Judge turns to the question of how long the trafficking lasted. To do so, he relies on the investigators’ reports highlighting the findings made by the Fédération de l’Industrie Horlogère Suisse (FH), the investigations, and the various hearings. The report from the Fédération de l’Industrie Horlogère Suisse (FH) is dated 21 October 2020, based on test purchases made on 15 July 2020. The first exchanges between the FH’s undercover investigators and Julien V. took place on the Telegram social network.

During a hearing in December 2022, Julien V. stated that he had been running this type of trafficking for 4 years, which would place the beginnings at the end of 2018 or the start of 2019. This matches a message posted on his communication channel dating these beginnings to 30 August 2018. During her own hearing, Julien V.’s mother stated that her son had been involved in this trafficking for “4 to 5 years”. In an audio message posted on his communication channel in July 2022, Julien V. claims to have been selling counterfeit watches for 5 years, which would this time push the start of the trafficking back to July 2017. However, the Presiding Judge points out that before the watches, Julien V. had an illicit activity that he had called “Mode et Bijoux” [“Fashion and Jewellery”].

After assessing the duration of the trafficking, the court turns to the suppliers. During his hearings, Julien V. said that he had first started by visiting shops in China, before later visiting workshops and factories manufacturing counterfeit watches. About ten suppliers are listed, such as NOB, PPF, and AR Factory. A report from the Fédération de l’Industrie Horlogère Suisse (FH) is mentioned and presented to the court, describing a raid by the Chinese police on the NOB factory, which was reported by the Chinese press in April 2021. This tends to confirm the existence of this supplier.

The Presiding Judge now turns to the costs generated by such an activity. Details are given on how the accounts and social networks, the website, and everything relating to this trafficking operated. During his hearing, Julien V. stated that he had a margin of €200 per watch sold.

To help him with his enterprise, Julien V. paid for the services of influencers who praised the quality of his products. These influencers went by nicknames such as “Salade Niçoise” [“Niçoise Salad”], “Les meilleurs cabreurs du Net” [“The best wheelie riders on the Net”], etc., and cost him €7,000 a month.

A photographer was also part of the team present in Thailand. And the shipping from China to France via drop shipping was carried out by a team of three people (2 men and 1 woman) for a cost of €50 per parcel.

This is the moment the Presiding Judge chooses to ask the bailiff to present a sealed parcel, seized by Customs on 27 October 2021 in Le Pontet. This sealed exhibit is shown to the defence lawyers, to all the defendants, to the civil parties’ lawyers, and to the Presiding Judge and his fellow judges. It is at this point that Florian R. speaks up. In a calm voice, very respectful of the court, and with fine eloquence, he informs the Presiding Judge that this sealed exhibit has nothing to do with Julien V. “The investigators did a good job but they mixed everything up,” he says. “With Julien we worked on a single series of doublettes. After that we never worked together again. We each went our own way.” The court takes due note of this intervention, and the Presiding Judge continues his account.

Counterfeit Rolex watches accounted for around 80% of sales. According to statements recorded in the official report, they were sold for €400 to €600 each. Doublettes, which are fake Rolex watches bearing an authentic serial number, were sold for €1,500 to €1,800. And for more elaborate watches such as counterfeit Richard Mille, prices ranged from €4,300 to €5,900.

Customers bought either for their own use or became resellers. The more watches they bought, the more preferential rates they received. This was the case for the reseller “Mister Watch”.

This is the moment when Julien V. suddenly speaks up. “I don’t have resellers! I’m so hungry for cash, I’m so greedy that I didn’t want partners. I’ve got 4 million in Bitcoin. I don’t give a damn about watches! It’s a hobby. The investigation was botched. Apart from destroying families you’ve done nothing. When I get out I’m going to bring down people much higher up. Franchisees were in on it with me and I paid them in cash. Rolex’s lawyer is going to have to answer for it, and it’s going to cost. I only love money, and I’m nothing but a seller of counterfeits.”

To conclude the “Customers” section, the Presiding Judge addresses the method of payment. It was either in cryptocurrency (Bitcoin preferably), with a tutorial explaining how to proceed, or via Transferwise. The customer paid on ordering. Julien V. never gave credit.

We now turn to the quantitative aspect. During his hearing before the Thai police and in the presence of investigators from the Service d’Enquêtes Judiciaires des Finances (SEJF), Julien V. admits to selling up to 10 watches a day. The count based on these statements would put the figure at 12,000 watches over the entire duration of the trafficking. “Do you confirm this figure?” asks the Presiding Judge, “No!” replies Julien V. “So how many, then?”, “Not a huge amount.” The Presiding Judge continues his account. The counterfeit watches were mainly Rolex, but also Richard Mille, Audemars Piguet, and Patek Philippe.

It is also noted, again based on his statements, that over the duration of his illicit activity selling counterfeit watches there would have been €3 million in earnings. And the Presiding Judge asks: “Profit or turnover?”, “Turnover” replies Julien V.

The investigators looked into the Wallet. From 23 June 2020 to 12 August 2022, $1.4 million appears (after fees and commissions). At Bitkub, Julien V. had opened an account in his partner’s name. He is said to have withdrawn €200,000 to €300,000. All this money is said to have been split between a safe and three banks. During the investigations it emerges that one of the accounts was credited with some €5.2 million from January 2018 to November 2022. To which he spontaneously replies: “I have a life, I don’t just sell watches!”.

In our next instalment we will look at this other life, his links with Florian R., and we will bring you the first exchanges with the civil parties’ lawyers. And finally, a scoop that stirred the court will be revealed.

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