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Four men accused of embezzling millions from Kinston company

Posted August 29, 2012

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— 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.
 

13 Comments

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  • iwannareply Aug 31, 2012

    Kinston is too far to drive to those open jobs.

  • btneast Aug 30, 2012

    Insurance companies spend most of their time trying to find ways to keep from paying claims most honest people file

    .....false insurance claims at one time was the largest white collar crime out there. Believe it or not, but it is quite common.....which hurts the honest guy who gets viewed with suspicion unfortunately.

  • jasttn2 Aug 30, 2012

    Were the owners of this company, the same people who owned the other big insurance company in Kinston back in the 90's. The father ended up going to jail for not paying claims and such. If so, I would say what goes around, comes around. Insurance companies spend most of their time trying to find ways to keep from paying claims most honest people file. I understand we all end up paying in the long run, but I have no sympathy for this company at all.

  • OneLove Aug 30, 2012

    I am so confused with the oil/gas comments on this story.

  • lisa4 Aug 30, 2012

    makeitright - I AGREE WITH YOU 100%!!!!

  • wayneboyd Aug 29, 2012

    Gregg69..I can't argue that point with you. But I'll put up money that even if, and I say if because I don't believe either really plays a factor, it is true that the storm in the gulf and the fires in the oil fields are really whats impacting gas prices. I'll bet that big oil is still exporting crude overseas today at the same pace as six weeks ago. Our prices at the pumps would remain unchanged if they would cut back on exports and supply the needs of those who the oil actually belongs to first.
    And oh, by the way, sure your greed for money is a blessing to you, but if you have kids they're going to actually be the ones putting the profits in your pocket.

  • makeitright Aug 29, 2012

    Let them stay in jail pounding license plates @ $5.00 per hour and they can get out when they pay off the 5 mill. And they can pay $100 a day in room and board too.

  • greg69innc Aug 29, 2012

    The oil companies are not doing anything wrong it is the old economic theory of supply and demand. I am so happy that I began investing in oil companies years ago.

  • OneLove Aug 29, 2012

    What I really want to know is: Have they bonded out? All the money they were stealing...is there any left?

  • charmcclainlovesdogs2 Aug 29, 2012

    They was caught and that is all that matters.

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