A Celebrity Photographer Built—And Lost—A $29 Million Luxury Watch Empire. Now His Investors Are Calling It Fraud

Why It Matters

The collapse highlights the risks of unregulated alternative‑asset funds and signals tighter scrutiny for watch‑investment schemes, affecting both investors and the broader luxury‑asset market.

Key Takeaways

• Khoo amassed $29 million in assets through The WatchFund.
• Business model bought watches below retail, resold with modest markup.
• No fixed payout deadlines; investors received piecemeal returns.
• Bankruptcy filing follows accusations of misrepresenting returns to investors.
• Authorities allege fraud, prompting contempt of court charges.

Pulse Analysis

The luxury watch market has evolved from a niche collector's hobby into a mainstream alternative‑asset class, with global sales projected to exceed $30 billion this year. High‑profile pieces from brands such as Audemars Piguet and Girard‑Perregaux command premium prices, prompting entrepreneurs to package them into investment funds. These funds promise returns that rival traditional equities while offering tangible, portable assets. However, the sector remains largely unregulated, and valuation standards vary widely, creating fertile ground for both genuine profit opportunities and potential abuse.

Dominic Khoo leveraged his reputation as a celebrity photographer and former watch journalist to launch The WatchFund in 2013. His pitch centered on buying timepieces at 70 percent of retail value and reselling them at a 40‑percent discount, while charging a modest 5 percent management fee. Investors were enticed by the promise of piecemeal payouts rather than fixed redemption dates, a structure that obscured cash‑flow timing. Critics argue that such opacity, combined with the lack of third‑party audits, makes it difficult to verify whether returns stem from genuine trade or from new capital inflows.

The bankruptcy filing and ensuing contempt of court charges signal a turning point for watch‑fund operators. Regulators in Singapore and Hong Kong have begun scrutinizing similar schemes, emphasizing the need for transparent valuation methods and investor protection safeguards. For capital‑hungry investors, the case underscores the importance of due diligence, especially when promised returns lack clear timelines. As the luxury watch market continues to attract institutional interest, industry players that adopt rigorous audit standards and clear disclosure practices are likely to survive, while opaque funds may face heightened legal challenges.