Discovery Insurance Embezzlement Case Rolls On

Jan. 09--On-lookers get another month to debate the final outcome of the Discovery Insurance Company embezzlement trial.

Assistant District Attorney Imelda Pate asked for the cases of Melvin Lyle Quinn, Franklin Ronald Steed and Roland Edward Steed to be continued to Feb. 4 in Lenoir County Superior Court Tuesday. Edward Earl Waters plead guilty for his role in the scheme on Nov. 12, and Russell Simeon Ward passed away at home on Nov. 9, 2011.

According to state prosecutors, Roland Edward Steed -- vice president of claims for Discovery from 1996 to November 2011 -- operated as the hub of the five-person embezzlement operation. Assistant District Attorney Imelda Pate said it's believed the other men did not know of one another's involvement.

It's believed the operation started in the late 1990s, but bank records were only available back to 2005. However, the $5.3 million dollars embezzled from the years of 2005-2011 represent a scale of insurance fraud unprecedented in state history.

For his part in the crimes, Waters, 62, confessed to two counts of aiding and abetting obtaining property by means of false pretense and two counts of conspiracy. Though unlikely, Waters could face a maximum sentence of 71 years and six months in prison. According to his plea deal, Waters agreed to cooperate with the prosecution and testify against his fellow defendants, if necessary.

Quinn, 56, of Goldsboro, Franklin Ronald Steed, 65, of Denton, and Roland Edward Steed, 68, of Swansboro, remain out of jail on bond.

Wes Wolfe can be reached at 252-559-1075 or [email protected]. Follow him on Twitter at WolfeReports.

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