City man among four charged in fraud
By From staff reports
Published in News on August 30, 2012 1:46 PM
KINSTON -- Four men, including one from Goldsboro, 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 of Swansboro, 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 of Goldsboro and Edward Waters of Kinston. A fourth suspect, Franklin Steed of Denton, allegedly cashed the bogus checks.
Authorities said the men conspired to split the money, which totaled $5.3 million.
Edward Steed, 67, 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, is charged with six counts each of obtaining property by false pretense, embezzlement, larceny by employee and corporate malfeasance.
Waters, 61, and Quinn, 55, 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 on Wednesday. Edward Steed's bond was set at $2.5 million.
Bond for Waters, Quinn and Franklin Steed was set at $1 million each.