A Stamford man pleaded guilty Thursday to defrauding his former employer, Mars Inc., out of more than $28 million over 12 years, federal prosecutors said.
Paul R. Steed, 58, admitted to two counts of wire fraud and one count of tax evasion before U.S. District Judge Kari A. Dooley. The charges stem from multiple fraud schemes Steed orchestrated while working for Mars Wrigley, a subsidiary of the Virginia-based candy and pet food giant.
Between 2011 and 2023, Steed held various positions at the company, most recently serving as global price risk manager for Mars Wrigley’s Global Cocoa Enterprise, authorities said.
Steed’s largest scheme involved creating a fake company called MCNA LLC, designed to mimic Mars Chocolate North America, a legitimate Mars entity. He diverted more than $15 million by directing sugar refineries to pay MCNA LLC for re-export credits through a U.S. Department of Agriculture program that Steed managed for Mars.
In a separate scheme, Steed redirected Mars’ dividend payments from its ownership stake in Intercontinental Exchange Inc., a financial services company, into an account he controlled, authorities said.
The conspiracy escalated in 2023 when Steed used a forged letter claiming authorization from Mars’ treasurer to sell all of the company’s shares of Intercontinental Exchange Inc. He deposited the resulting check for more than $11.3 million into the MCNA account.
From 2013 to 2020, Steed also used another company he owned, Ibera LLC, to bill Mars more than $700,000 for services that were never provided, prosecutors said.
Steed failed to report the stolen income on his federal tax returns from 2014 through 2023.
U.S. Attorney for the District of Connecticut David X. Sullivan announced the guilty pleas Thursday. Steed was arrested in March and is free on a $5 million bond.
Each wire fraud count carries a maximum 20-year prison sentence, while tax evasion carries up to five years. Sentencing is scheduled for Dec. 9.
Steed has agreed to pay $28,410,489 in restitution to Mars and owes an additional $10,310,680 in back taxes to the IRS, according to prosecutors.
Federal authorities have seized more than $18 million from Steed’s bank accounts. They are also seeking to forfeit a Greenwich home prosecutors say he bought with nearly $2.3 million in stolen funds. Another $2 million was allegedly sent to Argentina, where Steed holds dual citizenship and owns a ranch.
The case was investigated by the FBI, IRS Criminal Investigation Division and USDA Office of Inspector General.
