Cash-for-gold buyer Harold Gerstel's shop burns

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Just a few months after one of his employees was accused of ordering the killing of a business rival, a Toronto cash-for-gold dealer saw his shop burn under suspicious circumstances on Monday.

Police suspect someone tossed an "incendiary device" - such as a Molotov cocktail - through the front of Harold Gerstel's shop, which specializes in purchasing used gold, diamonds and other jewellery.

Firefighters were called to Harold the Jewellery Buyer, on Bathurst Street near Glencairn Avenue, shortly after 2:26 a.m. Within 15 minutes, they had brought it under control and managed to contain the flames to the small store itself. Neighbouring businesses did not appear to be damaged.

Investigators from the Ontario Fire Marshal's office have begun probing the exact cause of the blaze, while police opened an arson investigation and canvassed the area, a strip of street-front businesses several blocks long.

"We're going to be looking at all the video cameras from all the outstanding businesses in the area," said acting Staff Sergeant Doug Minor at the local police station.

Owner Harold Gerstel declined an interview as he surveyed the damage with a glass contractor Monday afternoon, referring reporters to a man he identified as a spokesman, who gave his name only as Tom.

Tom said the jewellery hadn't been damaged, but it wasn't known when the business would reopen.

"I don't know who would do this," he said. "[Harold]is not Sherlock Holmes."

The store looked completely black on the inside, with the front windows all shattered, the frames and protective iron bars twisted.

This summer, Maria Konstan, a 71-year-old employee of Mr. Gerstel's, was charged with putting a hit on Jack Berkovits, owner of Omni Jewelcrafters, which operates a larger, more prominent store kitty-corner to Mr. Gerstel's.

The purported plot surfaced when the alleged hitman, a mixed- martial-arts fighter who said he was employed as Mr. Gerstel's "enforcer," revealed the alleged scheme to Mr. Berkovits and made a confession to police.

Mr. Gerstel denied the allegations against his employee and also said the man doesn't actually work for him. The case is still before the courts. Police said it was too soon to know if there was any connection between that case and Monday's fire.

"At this point, it would be speculation. [Detectives]are investigating all aspects of it," Sgt. Minor said.

The cash-for-gold business has exploded in recent years with the skyrocketing price of the precious metal. Mr. Gerstel has become a staple of local TV commercials, sitting behind his desk inspecting diamonds and handing over wads of cash to jewellery sellers.

The competition between Mr. Gerstel and Mr. Berkovits has apparently been running since last year, when Mr. Berkovits began advertising for used jewellery at his Bathurst location.