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UPDATE: Goldsboro Man Pleads Guilty To Multi-million Dollar Embezzlement Scheme

Another local man suspected in a multi-million dollar insurance fraud scheme has pleaded guilty in the case. Melvin Quinn, 56, of Goldsboro was convicted on two counts of aiding and abetting obtaining property by false pretense and two counts of conspiracy for his role in the scheme involving Discovery Insurance of Kinston, according to the Kinston Free Press.

Edward Waters of Kinston previously pleaded guilty in the case, while Edward Steed of Swansboro and Franklin Steed of Denton have yet to be tried or enter pleas. The men are accused of embezzling a total of $5.3 million between 1994 and 2011.



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A local man pleaded guilty to a multi-million dollar insurance fraud scheme, and is now awaiting sentencing.

Edward Waters, 62, of Kinston pleaded guilty to conspiring to defraud Kinston's Discovery Insurance Company of more than $2.3 million. That's according to the Kinston Free Press, which says Waters plea deal had him plead guilty to two counts of aiding and abetting obtaining property by means of false pretense and two counts of conspiracy. Waters was originally charged with the following:
Obtaining Property by False Pretense (7 counts)
Embezzlement (7 counts)
Larceny by Employee (7 counts)
Corporate Malfeasance (7 counts)
Felony Conspiracy (7 counts)

Court proceedings are pending for three others allegedly involved in the scheme.

Prosecutors say the scheme went on for 15 years, according to the paper, and the maximum sentence waters could face is 71 years.


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Four men, including a former vice president, are accused in a $5.3 million embezzlement scheme involving a Kinston insurance company.

The state Department of Insurance started its investigation after officials from Discovery Insurance notified them of financial discrepancies in the company's claims department.

Former Discovery executive Edward Steed of Swansboro is accused of writing company claim checks to fictitious businesses owned by Marvin Quinn of Goldsboro and Edward Waters of Kinston. Steed was vice president of claims for the insurance company from 1994 to last November when he was fired after the company said it uncovered criminal activity.

Discovery says Steed was responsible for implementing processes and procedures in the auto claims department and eventually oversaw the daily operations of that department.

Steed's brother, Franklin Steed of Denton, is accused of cashing checks from the insurance company that were made out to fake people.

Insurance investigators say the four conspired to split the embezzled funds. They say the checks were written over a six year period.

The four were indicted by a Lenoir County grand jury Tuesday. Edward Steed was arrested in Carteret County, Waters and Quinn both arrested in Lenoir County and Franklin Steed arrested in Davidson County.

Edward Steed's bond was set at $2.5 million, while the other three were jailed on $1 million bonds.

The state says Discovery Insurance cooperated with their investigation.

In a statement, company president Stuart Lindley said they are sadden that a highly regard employee would commit these crimes. "We are very fortunate that it was isolated to only this employee, and in no way affected our agents, customers, daily operations or financial stability of the company," said Lindley.


Edward Steed, 67, of 109 Wind Dance Lane, Swansboro, is charged with:
Obtaining Property by False Pretense (7 counts)
Embezzlement (7 counts)
Larceny by Employee (7 counts)
Corporate Malfeasance (7 counts)
Felony Conspiracy (20 counts)

Marvin Quinn, 55, of 120 Cassedale Drive, Goldsboro, is charged with:
Obtaining Property by False Pretense (7 counts)
Embezzlement (7 counts)
Larceny by Employee (7 counts)
Corporate Malfeasance (7 counts)
Felony Conspiracy (7 counts)

Edward Waters, 61, of 610 Walston Ave., Kinston, is charged with:
Obtaining Property by False Pretense (7 counts)
Embezzlement (7 counts)
Larceny by Employee (7 counts)
Corporate Malfeasance (7 counts)
Felony Conspiracy (7 counts)

Franklin Steed, 65, of 453 Flat Swamp Lake Road, Denton, is charged with:
Obtaining Property by False Pretense (6 counts)
Embezzlement (6 counts)
Larceny by Employee (6 counts)
Corporate Malfeasance (6 counts)
Felony Conspiracy (6 counts)


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