He killed himself after a car chase in Pennsylvania.
Robert Godwin Senior, 74, was gunned down as he collected aluminium cans outside his home in East 93rd Street, Cleveland, Ohio.
The vile attack was then broadcast live over social media in a gruesome video Stephens uploaded to Facebook showing him fatally shooting Mr Godwin at point blank range.
And just minutes later the 37-year-old claimed to also be responsible for several other murders – but police claim the suspect had not been linked to any other deaths.
Stephens then posted several claims, through Facebook status updates and videos, that he killed up to 15 people. He said that he was angry because of problems with a relationship with a woman named Joy Lane and other family members.
Steve Stephens shot grandfather Robert Goodwin Senior to death on Facebook Live
Police at the scene in Pennsylvania
According to a Twitter statement from the Pennsylvania police Stephens was spotted this morning in Erie County, after a brief pursuit Stephens shot and killed himself.
His death brings an end to a two-day manhunt which spanned five US states and Stephens was listed on the FBI’s most wanted list.
At a press conference the chief of police Calvin Williams said that they had received a tip off from a member of the public saying that the Ford Fusion car used by Stephens had been seen in a McDonald’s car park.
Steve Stephens shot himself earlier today, police said
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The chief then said police officers pursued the vehicle. When officers approached the vehicle Stephens then “took his own life”.
It is believed that he shot himself in the head but that was not confirmed by the police.
Stephens died at the scene.
Cleveland Chief of Police Calvin Williams
However, the police chief admitted that: “There are a lot of things we don’t know about this case.”
Williams said: “Our condolences are still w family of Mr. Godwin. You've heard them expressing forgiveness. We need to follow their lead.
“We are taking a slow, cautious approach right now. We're still putting all the pieces together. There is a lot we don't know.
Stills from the Facebook Live footage made by Steve Stephens
He added: “We ask that you give the family space. For them this is not over.
“This started with one tragedy and ended with another person taking his own life.”
Cleveland’s mayor Frank Jackson said: “We have closure in this case. Our thoughts are with the Godwin Family. This is about the loss of an innocent victim.”