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Wouldn t go into mexico at gunpoint. i mean, it was completely out of character for him. reporter: then harvey s friend greg, the stainless steel guy, said he noticed something strange about steven s usually cluttered cabin. it was completely sterile. just nothing in it, not one loose object. reporter: it was as if steven had never set foot in here. and then those boaters made their shocking discovery. steven face down in the ocean, a bullet in his head. what was it like to get that news? oh it was awful. i felt like i was in some made for tv movie. it s like, this can t be happening. none of us could believe it was happening. reporter: detectives ken clark and robert martindale wanted to have a look at harvey morrow s boat, steven s last known residence, and they wanted to talk to harvey. they got a search warrant. brought a whole team to the harbor. seized the yacht. when you first walked in, was it clean, absolutely clean. clean enough for you, and these are my wor ....
he said that? yeah. yeah. what did you think? it s like, well, okay. work another year. but by the time i m in it. the boat s bought. he s already sunk so much money into it. so it s like, let s just get but by the time i m in it. the boat s bought. he s already sunk so much money into it. so it s like, let s just get this done. can t walk away now. right. can t walk away now. let s get it done. reporter: they did not ask steven to kick in a share, which was probably just as well, given how steven was with money. the creative side of his mind worked very well. but he was not a good money manager. reporter: steven bailey williams, as his friends told the detectives, had lived hand to mouth most of his life. he was a radio guy, made good money, and spent it. finance not a strong suit, said his friend doug johnson. he was bad with money and he was paperwork averse. he would just forget to file his taxes for a few years. how many years would he go? his record was ....
The numbers i m getting from the court were over 33,000 pages of documentation. quite quite frankly, we missed it. reporter: they d missed evidence that seemed to show harvey wasn t stealing from steven at all. had no motive to kill him. suddenly, the whole case against harvey, fragile to begin with, seemed in danger of falling apart. and amid doubt about the new evidence, the judge declared a mistrial. i thought, oh my god. he s being set free. reporter: but harvey wasn t set free. instead, the state appointed to the case its third prosecutor in five years. this was my first case of this particular type. reporter: prosecutor john mckinney. how do you get ready? quickly. reporter: his first task to address that alleged loan between harvey and steven s father, the issue that caused the mistrial. he spoke to steven s best friend and heard this i said i know it s a complete fiction. i said, i know it s fraud. reporter: and sure enough, ....
And i said, how could this be? i mean, you re a multi-millionaire and you don t have any money. and he said, well, harvey s got it all tied up in these offshore accounts. reporter: the detectives discovered harvey morrow had put steven s inheritance money into an off-shore bank account in the british virgin islands, just as he said he would, but then he secretly brought it back to the u.s. in small increments and used the money to refurbish the boat. harvey just sucked up all that money? all of it. reporter: steven, by his own admission a lousy money manager, trusting, vulnerable after the death of his father, was, said detectives, the perfect mark. steven was no match for this man at all. reporter: nor, apparently, was his wife, debbie. i was really very much in love with harvey. reporter: but as she now began to discover the man she loved had lied. a house in vail, colorado, which he told her he owned outright, actually belonged to someone else. the money she se ....
And i m like here i am from west virginia, 18, i m like, what? and he goes, he s gay. it s like oh, ok, well i can accept that then. so reporter: and that very day sylvia and steven began a warm, lifelong friendship. many afternoons spent lingering at this coffee shop. and many memorable evenings. what were those dinners like? oh, steven s an amazing cook. if you were patient, he was good. he was a phenomenal cook. but you had to be geared to eating at, like, 10:30 or 11:00 because he was the type of person that if he would talk to you, you would have his undivided attention. so by the time we would eat it s, like, everybody s drunk. reporter: and then somewhere in the middle of the 90s, the radio business seemed to tire of steven s huge deep voice and happy style. he got a job in the winery business for a while. then went home to care for his ailing father in southern california. and in 2003 when his father died oh, he was devastated. ....