A gem of an idea
The stone is glittering but the feuding is bitter, writes Joanne Carroll.
I can live. I have faith in God. I have to let it go. Gerry Commandeur
AWest Coast master gem cutter is rebuilding his business with plans to market a unique New Zealand gemstone to the world.
Gerry Commandeur hopes to create a ‘‘ruby rush’’ on the West Coast attracting tourists from all over the world to fossick for New Zealand’s rarest gemstone, goodletite.
The only known source of goodletite is in Hokitika, and Commandeur has been selling it since 1994 under the trademark New Zealand Ruby Rock.
But now, at the age of 79 and after years of financial trouble, he is building the business up from the ground after losing everything.
Commandeur was born in Amsterdam, one of 13 siblings. He was a young boy through World War II and left Holland 44 years ago.
He moved to Australia where he and his wife Corrie had eight children. All talented musicians and singers, the Commandeur family travelled around putting on shows for church groups.
Commandeur, who was also a trained car spray painter, had ambitions to become an evangelist minister until he discovered his passion for gemstones. He set up a rock mineral shop in Queensland, and another when he moved to New Zealand 23 years ago with only $600 in his pocket.
His life changed, he said, when a customer showed him a piece of goodletite.
Named after William Goodlet, who brought the stone to the attention of professors at Otago University in 1892, it contains ruby, sapphire and tourmaline crystals in emerald green fuchsite, and is found only in Westland.
‘‘Gold miners were throwing it back for 150 years. Nobody knew what this was,’’ says Commandeur.
Realising the rock was suitable for carving into jewellery, he trademarked his business and began selling New Zealand Ruby Rock in Hokitika in 1999.
The business was successful for many years with Commandeur showcasing his jewellery in a gallery in the town’s old fire station. But cracks began to form when Commandeur and his wife Corrie split up in 2010 after 50 years of marriage.
‘‘We had good company until my wife gets sick. She had motor neurone disease and died 51⁄2 years ago. We were making between $300,000 and $400,000 a year,’’ he said.
Gerry blames his downfall on his accountant, Lindsay Smith, who has since pleaded guilty to fraud charges relating to an unrelated deal in which he said he was helping his friends.
Smith bought Corrie’s shares in the company for almost $135,000.
The business began to suffer from a downturn in tourism after the Christchurch earthquakes, and Commandeur was ordered to pay $50,000 in a dispute with a former business associate. He was unable to pay and was declared bankrupt in September 2011.
Smith then bought Commandeur’s shares from the official assignee for $5000, and Commandeur became a 50 per cent shareholder.
Commandeur believes that Smith wrongfully took possession of company assets.
He complained to police, who searched Smith’s house and returned some tools and a car back to Commandeur. However, Commandeur claims there are other assets which are still unrecovered and were not declared to the liquidator.
The company’s debts with ASB were secured by a first mortgage over his Hokitika house.
When PricewaterhouseCoopers were appointed liquidators to Ruby Rock Enterprises Ltd, the house, which had a rating valuation of $650,000, was sold for $220,000 by mortgagee sale.
‘‘They sold my gemstones for $8000. That is the scandal. I lost 150kg gem-quality goodletite. It was sold for $10,000 by PWC. This rock is worth $1m,’’ he said.
The police say they searched Smith’s house and returned some assets to Commandeur but they were not able to prosecute as Smith would have claimed ownership as he was a director of the company.
Smith was himself made bankrupt in 2013 and pleaded guilty in June last year to seven charges of using a document to gain pecuniary advantage, two of causing loss by deception and one charge of obtaining a document by deception (forgery). The charges relate to a mortgage scam Smith had set up using money a Blenheim couple invested in a new subdivision he was project managing. He is currently on bail awaiting sentence.
A Hokitika detective’s email, seen by Fairfax Media, said police were sympathetic to Commandeur’s situation, but it appeared he often did not record transactions and would pay in cash. A police spokesperson said the investigation into Commandeur’s complaints was ‘‘thorough and robust’’.
Smith said he only became involved in the company to help Corrie Commandeur, who wanted out of the business.
Gerry Commandeur would arrive at his home unannounced, two to three times a day, ‘‘waving his walking stick at anyone in his presence’’.
Smith said he was storing the tools for the liquidator.
‘‘I gathered up all assets belonging to Ruby Rock and stored them at [my house]. All records were handed to PWC including the million-dollar ruby rock sold by PWC for $10,000. This is exactly the same sum that Gerry paid for this rock,’’ he said.
Commandeur is now a discharged bankrupt and has set up a new shop in Hokitika’s main street. ‘‘I can live. I have faith in God. I have to let it go.’’
He has approached Development West Coast for funding to promote what he hopes will be a prosperous business, attracting tourists to fossick for a gem found only in this country.