Ex-broker held in client’s slaying

In many ways, the story Harvey Morrow told a co-worker in early September made sense: His wife had died in a boating accident in the Gulf of Mexico and the ocean so repulsed him that he moved far away to Big Sky Country to start over.

Morrow said his fast-track life as a stockbroker wasn’t fulfilling anymore, so he took a job as a car salesman.

“Just the view of water was too much for him to take,” recalled Joe Parsetich, a manager at Pete’s Auto Sales in Great Falls, Mont. “In a very calm, somber tone he told me it held too many memories of his wife and the loss of their boat.”

Parsetich, a former police officer, was a bit curious about his colleague’s former life. Wondering if Morrow’s tragic tale may have generated news coverage, Parsetich Googled him.

The information that popped up on the screen would eventually land Morrow in jail awaiting extradition to Los Angeles County, where he is expected to face charges that he killed a friend and client for financial gain.

An Internet story posted by a Denver news station described Morrow as a “person of extreme interest,” who was being sought by Los Angeles County sheriff’s homicide investigators in connection with the death of Steven Bailey Williams, who in the early 1980s was a popular drive-time radio host in Denver.

Pleasure boaters found Williams’ decomposed body May 18, in the waters off Catalina Island. An autopsy later revealed that Williams had died of a gunshot wound to the back of the head.

Investigators determined the body had been in the water for more than a week, long enough for small barnacles to become attached to his shoes.

Court documents, including a June 16 search warrant affidavit and interviews with sheriff’s investigators describe the events that led up to Morrow’s arrest:

Morrow became a person of interest after several of Williams’ friends told investigators that the two men had lived together for three years and had planned to sail around the globe -- plans that were perpetually being delayed. Most recently, the two had lived on Morrow’s 68-foot twin-mast sailboat moored at the Cabrillo Beach Yacht Club marina in San Pedro.

After three decades in the radio business, Williams had taken a second career as an assistant winemaker in Northern California and also supported himself doing radio voice-over work.

The two men met in 2004. At the time, Williams was dealing with his deceased father’s estate. Earlier, he had left Denver and moved to Corona del Mar to care for his ailing father. Shortly after his father’s death, Morrow showed up and introduced himself to Williams as “an investment banker from New York,” who knew his father.

Williams then asked Morrow to set up a trust fund in Williams’ name from the proceeds of the sale of the Corona del Mar home, which was valued at more than $1 million.

Morrow had decades of financial experience and had worked as the executive vice president of two Texas stock brokerage firms, investigators said.

Authorities allege in court documents that Morrow used his financial expertise to slowly bleed the estate of as much as $2.4 million.

Morrow allegedly deposited nearly $2 million from the estate into a bank in the British Virgin Islands. According to investigators, Morrow regularly withdrew the money in small increments from the offshore account and placed it under his name in a U.S. bank.

Sheriff’s homicide detectives said they were still examining Morrow’s financial records.

Morrow allegedly used a large chunk of money from the Williams’ estate to overhaul his yacht, the Iolair Mara, including outfitting it with a fireplace, a teak deck and $100,000 worth of electronics.

Williams attributed Morrow’s spending to his success in the banking world. But he grew concerned after friends began to ask about his inheritance.

Williams told one friend that he was going to confront Morrow and get his money back as soon as Morrow returned from a fishing trip to Bishop, Calif. Another friend, Leo Rossi, told authorities that Williams was upset because he was “trying to get money from Morrow and couldn’t.”

Williams and Morrow had lived for a time in Rossi’s home while the boat was being refurbished. Even after they moved out, Williams’ mail was delivered to Rossi’s San Pedro house, and Williams frequently stopped in to use the Internet. The last time Rossi saw Williams was May 5.

During that visit, Williams told Rossi that he and Morrow were going to take their boat out and “motor around,” according to court papers.

The last person to see Williams alive was a boat owner at the marina on May 7.

Other witnesses at the marina told authorities that Morrow’s boat was gone between May 8 and May 12.

When friends asked about Williams’ whereabouts, Morrow told them that Williams had moved to Hawaii. Then Morrow disappeared. Sheriff’s investigators later impounded the boat.

In early September, Parsetich, the Montana auto dealer, said the online news piece prompted him to contact a friend at the Cascade County Sheriff’s Department.

A week later, Montana and Los Angeles County authorities took Morrow into custody at the dealership.

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andrew.blankstein@latimes.com