Days before the meeting, Patrizzi removed from a company safe several watches he says belong to him, including two Patek Philippe Calibre 89s, fearing he'd be unable to retrieve them later. The Calibre 89 is the most complicated pocket watch ever created (see graphic below). Artist House disputes Patrizzi's ownership of the Calibre 89s and several other watches now in his possession. A Swiss judge has ordered Patrizzi not to sell the watches—worth a total of more than $12 million—until ownership is determined.

Patrizzi was officially fired from Antiquorum in late August. In October, he lost the second round in a case challenging the June board votes. And his legal problems are getting much worse. A preliminary forensic accounting conducted by PricewaterhouseCoopers suggests that in 2006, $5 million was transferred from Antiquorum into Patrizzi's personal bank account and never returned. For his part, Patrizzi says he set aside the money to purchase watches on Antiquorum's behalf. But in late October, Antiquorum filed a civil suit in Geneva over the disputed watches and money, according to a source familiar with the situation. The company also intends to pursue criminal charges.

In the meantime, Antiquorum lumbers on without its very public face. The Wall Street Journal story on close ties between watch manufacturers and Antiquorum, while not surprising to dealers and competitors, further threatens the company's already tarnished reputation. The auction business is based on relationships and trust, observers say, and clients may be reluctant to deal with a company that's in such turmoil.

As for Artist House, which has written down most of its Antiquorum stake, its ability to pump more money into the watch business is in question. The company's stock is down 90 percent since it announced the Antiquorum investment in late 2005. And it burned through more than half of its cash in the past fiscal year.

Patrizzi now splits his time between his apartment in New York, his chalet in the French Alps, and his home in Monaco. He says that even if a court overturns his dismissal, he would probably not return to Antiquorum. But then he adds, "At the same time, I say, 'It's my son. Can I let it die?' "

For Artist House, his reappearance would certainly be unwelcome. In mid-September, a pair of the company's executives went back to Patrizzi's former apartment in Geneva. Taking a closer look at the skull on the mantel, they discovered a note tucked inside.

It read, "This is the first Japanese I killed."