Former Mars Wrigley Executive Pleads Guilty to Stealing $28 Million
Paul Steed admitted to wire fraud and tax evasion after prosecutors say he diverted company funds to shell entities and foreign accounts
A former Mars Inc. executive pleaded guilty Thursday to federal fraud and tax charges after admitting to stealing about $28 million from a Mars subsidiary, prosecutors said.
Paul Steed, 58, appeared in federal court in Bridgeport, Connecticut, and pleaded guilty to two counts of wire fraud and one count of tax evasion. He 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.
Prosecutors said the theft began around 2013 and continued for years through schemes that included diverting funds to companies Steed created to mimic legitimate Mars vendors. They allege Steed sent more than $26 million to a company he set up called MCNA LLC, which was designed to resemble Mars Chocolate North America.
Authorities have seized more than $18 million from Steed’s bank accounts, and he has agreed to forfeit the seized funds, according to court filings. The government is also seeking to liquidate a home in Greenwich, Connecticut, that prosecutors say was purchased with about $2.3 million of the stolen money. Prosecutors said Steed transferred roughly $2 million to Argentina, where he has relatives and owns a ranch.
Steed, a dual U.S. and Argentine citizen who formerly served as a global price risk manager and sugar market expert for Mars Wrigley, was free on $5 million bail after his court appearance. His attorney, former U.S. Attorney for Connecticut Deirdre Daly, did not immediately respond to requests for comment, and messages left at phone numbers and email addresses for Steed were not immediately returned.
Mars Inc., based in McLean, Virginia, is the parent company of Mars Wrigley and the maker of brands including M&M’s, Snickers and Skittles. The company notified authorities after uncovering irregularities, leading to a federal indictment that detailed the schemes prosecutors say Steed used to divert company funds.
Federal prosecutors say the schemes involved falsified invoices and deceptive accounting to conceal transfers to shell entities. The indictment described how MCNA LLC and other companies were established and used to receive payments that were then routed to personal accounts and assets.
Steed’s guilty plea resolves the criminal case against him in the District of Connecticut, but civil forfeiture actions and tax collection efforts remain ongoing, according to court records. The government’s forfeiture filings list bank accounts and other assets as subject to seizure and liquidation to satisfy restitution and tax liabilities.
Sentencing is scheduled for Dec. 9. If convicted on the charges as charged in the indictment, defendants in wire fraud and tax evasion cases face potential prison terms, though actual sentences depend on federal sentencing guidelines and judicial discretion.
The case underscores increased scrutiny on corporate controls and vendor management practices following internal and external investigations into alleged financial misconduct. Mars and its subsidiaries did not immediately provide comment beyond the information in court filings and prosecutors’ statements.