Former Mars Wrigley Executive Pleads Guilty to Stealing $28 Million
Paul Steed admits to wire fraud and tax evasion; agrees to $28.4 million restitution and faces Dec. 9 sentencing
BRIDGEPORT, Conn. — A former executive of a Mars Inc. subsidiary pleaded guilty Thursday to fraud and tax charges after prosecutors said he stole about $28 million from the confectioner.
Paul Steed, 58, admitted in federal court to two counts of wire fraud and one count of tax evasion related to schemes prosecutors say began around 2013. Steed has agreed to pay $28.4 million in restitution to Mars and owes roughly $10 million in back taxes to the Internal Revenue Service, U.S. Attorney for Connecticut David Sullivan said in a statement.
Steed, of Stamford, Connecticut, appeared in federal court in Bridgeport and is free on $5 million bail. Sentencing is scheduled for Dec. 9. Authorities said they have seized more than $18 million from Steed's bank accounts and that Steed has agreed to forfeit that money. The government is also seeking to liquidate a Greenwich, Connecticut, home that prosecutors say was purchased with $2.3 million of stolen funds.
Prosecutors said the bulk of the theft — more than $26 million — was funneled to a company Steed created, MCNA LLC, which was designed to mimic an actual Mars company, Mars Chocolate North America. Authorities allege Steed diverted company funds to entities he controlled and sent approximately $2 million to Argentina, where he has relatives and owns a ranch.
Steed, a dual U.S. and Argentine citizen, was once a respected sugar market expert at Mars Wrigley and served most recently as global price risk manager, according to prosecutors. Mars Wrigley is a subsidiary of McLean, Virginia-based Mars Inc., the maker of M&M’s, Snickers, Skittles, Altoids mints and other confectionery and food products.
Federal prosecutors described a multi-year pattern of deceit, alleging Steed engineered transactions and created sham invoices and companies to conceal the transfers of corporate funds. The indictment that preceded Thursday’s plea charged him with a variety of schemes to divert funds from the company beginning in about 2013.
Publicly available court filings state that investigators traced transfers to bank accounts controlled by Steed and to the shell entities he established. Law enforcement action has recovered a substantial portion of the alleged theft, and prosecutors are pursuing forfeiture and liquidation of assets tied to the scheme.
Steed did not immediately respond to messages left at phone numbers and email addresses listed in public records. His attorney, Deirdre Daly, a former U.S. attorney for Connecticut, did not immediately respond to requests for comment.
Mars Inc. did not comment in court filings, and corporate spokespeople did not provide a statement to prosecutors’ offices in the court record. The company has previously said it takes steps to investigate and remediate internal fraud when uncovered.
The case underscores heightened scrutiny by federal prosecutors of corporate officers who allegedly use their positions to divert business funds for personal gain. Steed’s guilty plea resolves criminal charges that will proceed to sentencing in December, at which point a judge will determine his punishment and any additional restitution or forfeiture measures.