Suspect in slaying of McStay family owed victim money

SAN BERNARDINO, Calif. (KABC) -- The suspect accused of killing all four members of the McStay family allegedly owed his business partner, Joseph McStay, approximately $30,000, according to newly unsealed court documents filed by San Bernardino County sheriff's investigators.

Charles "Chase" Merritt is accused of using a sledgehammer to kill McStay, McStay's wife Summer, and their two children, 4-year-old Gianni and 3-year-old Joseph Jr. on Feb. 4, 2010. He then buried their bodies in the desert north of Victorville.

All four suffered blunt force trauma to the head, with Gianni receiving at least seven blows.

The search warrants paint a picture of Merritt as a man with big-time money problems around the time the McStay family went missing in 2010. Documents show that not only did Merritt owe McStay approximately $30,000 from a gambling debt, but Merritt also owed approximately $20,120.80 in unpaid taxes.

A third business associate, Daniel Kavanaugh, also told investigators that McStay, who owned a decorative water fountain business, planned to fire Merritt. The men partnered in the business, which was started by McStay, and Merritt was hired to design the fountains, authorities said in the 305 pages of search warrants and affidavits filed in the case.

At last month's preliminary hearing, prosecutors alleged that in the days right after the McStay family went missing, Merritt had taken McStay's checkbook and forged his signature, writing thousands of dollars in checks, making them all out to himself.

The search warrants also show that not only did Merritt tell investigators he'd started writing a book about the McStay family disappearance, but during a search of Merritt's home in October 2014, investigators say they found notes about the homicide investigation, including several quotes "to do with remorse, forgiveness and murder". The papers don't detail what the quotes were.

Merritt is due back in court next week with trial set for Aug. 10. District Attorney Mike Ramos will be seeking the death penalty if Merritt is convicted.

The Associated Press contributed to this report.