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If you say something to his wife what is to stop him from blaming you for "planting" the messages / emails / whatever because after all, you do have his password.
If someone gives me their password for whatever reason, I usually suggest they change it afterwards so there is no question that anything that happens is linked to me.
I'd say you crossed a major line both continually reading his messages, as well as calling him out in person. You could have kept it professional without him knowing that you were reading it - and from the sound of it I wouldn't have done business with him anyway if he was bitching about a free service.
Remind me not to give you my password ;)
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