Four men accused of embezzling millions from Kinston company
Posted August 29, 2012
Kinston, N.C. — Four men have been charged in an insurance embezzlement scheme that investigators said Wednesday cost a Kinston company more than $5 million.
The arrests stem from an investigation that started in November 2011 after Discovery Insurance notified the North Carolina Department of Insurance of discrepancies in the company’s claims department, according to state Insurance Commissioner Wayne Goodwin.
Authorities examined checks written since 2005 and determined some were bogus. Edward Steed, a former employee of Discovery Insurance, is accused of writing fraudulent claim checks from the company to fictitious businesses owned by two accomplices, identified as Marvin Quinn and Edward Waters. A fourth suspect, Franklin Steed, allegedly cashed the bogus checks.
Authorities said the men conspired to split the money, which totaled $5.3 million.
Edward Steed, 67, of 109 Wind Dance Lane, Swansboro, is charged with seven counts each of obtaining property by false pretense, embezzlement, larceny by employee and corporate malfeasance. He is also charged with 20 counts of felony conspiracy.
Franklin Steed, 65, of 453 Flat Swamp Lake Road, Denton, is charged with six counts each of obtaining property by false pretense, embezzlement, larceny by employee and corporate malfeasance.
Waters, 61, of 610 Waltson Ave., Kinston, and Quinn, 55, of 120 Cassedale Drive, Goldsboro, are both charged with seven counts each of obtaining property by false pretense, embezzlement, larceny by employee, corporate malfeasance and felony conspiracy.
The men were indicted by a Lenoir County grand jury Wednesday, Goodwin said. Edward Steed’s bond was set at $2.5 million.
Bond for Waters, Quinn and Franklin Steed was set at $1 million each.