Former Mars Wrigley Executive Pleads Guilty to $28 Million Fraud Scheme
BRIDGEPORT, Conn. — A former high-ranking executive for Mars Wrigley, a prominent subsidiary of the global confectionery powerhouse Mars Inc., pleaded guilty on Thursday to an elaborate scheme that defrauded the company of a staggering $28 million. Paul Steed, 58, of Stamford, Connecticut, admitted his culpability in federal court in Bridgeport, facing charges of two counts of wire fraud and one count of tax evasion.
The Orchestrated Deception
Steed, who held the influential position of global price risk manager for Mars Wrigley and was once considered a respected expert in the sugar market, orchestrated the multi-million dollar theft over approximately a decade, beginning in 2013. Prosecutors revealed that Steed systematically diverted company funds into shell corporations he secretly established. The most significant of these, MCNA LLC, was designed to closely mimic an actual Mars entity, Mars Chocolate North America, thereby facilitating the illicit transfer of over $26 million in stolen capital.
Financial Ramifications and Asset Recovery
The financial ramifications for Steed are substantial. As part of his plea agreement, he has consented to pay $28.4 million in restitution to Mars Inc. Additionally, he faces a separate liability of $10 million in back taxes owed to the Internal Revenue Service. Federal authorities have already moved to recover a portion of the stolen funds, seizing more than $18 million from Steed’s bank accounts. The government is also actively pursuing the liquidation of a home in affluent Greenwich, Connecticut, which Steed allegedly purchased for $2.3 million using his ill-gotten gains. Further investigation revealed that Steed, a dual U.S. and Argentine citizen, had transferred an additional $2 million to Argentina, where he maintains relatives and owns a ranch.
Impact on Mars Inc. and Corporate Security
Mars Inc., headquartered in McLean, Virginia, is a privately held global leader known for an extensive portfolio of beloved brands including M&M’s, Snickers, Skittles, Altoids mints, and Doublemint gum, alongside various other food products and pet care items. The breach of trust by a long-term executive like Steed highlights the significant financial vulnerabilities even in large, established corporations.
Sentencing Awaits
Steed, who is currently free on $5 million bail, now awaits sentencing. His court date is set for December 9, where he faces the potential of a lengthy prison sentence for his crimes. The case underscores the serious consequences for corporate fraud and the intricate efforts by law enforcement to recover stolen assets.
