He is in the Restuarant on the docks called The Hungry Shark. Loc -605, -579. He is in the back room to the left as you are facing the entrance to the restuarant, drop him twice so far but no loot yet.
This guy drops Blue diamonds,reg diamonds,a ruby,sapphire, and star ruby. These are the only gems I have found on them. They also drop vendor fodder stuff like words,ogre parts, etc.