Paul Steed, age 58, from Stamford, admitted to fraud and tax violations on Thursday related to embezzling millions from a chocolate company.
BRIDGEPORT, Conn. — A former employee of the Mars, Inc. chocolate company in Connecticut confessed on Thursday to engaging in fraudulent and tax criminal activities to siphon off millions of dollars from the business.
Paul Steed, 58, of Stamford, made the plea in Bridgeport federal court.
He has agreed to pay back $28,410,489 in restitution to Mars, according to a report from the Interim U.S. Attorney for the District of Connecticut.
The government also determined that Steed owes the Internal Revenue Service $10,310,680 more in back taxes.
According to court documents and testimonies, from 2011 to 2023, Steed was employed at Mars Wrigley, a division of Mars, where he operated from his home office in Stamford.
During his tenure, Steed held various positions, culminating in his role as Global Price Risk Manager for Mars Wrigley’s Global Cocoa Enterprise.
In this position, Steed was tasked with overseeing Mars Wrigley’s involvement in the U.S. Department of Agriculture’s Sugar-Containing Products Re-Export Program.
Around 2016, Steed established his own company – MCNA LLC – to mimic an actual Mars entity, Mars Chocolate North America, prosecutors say.
Steed allegedly misappropriated over $15 million of Mars’ funds by establishing a bank account under the name of MCNA. He then directed sugar refineries, which bought Mars’ re-export credits through the USDA program, to pay MCNA LLC as though it was a legitimate company.
During this period, Mars had an ownership interest Intercontinental Exchange, a company specializing in financial services that ran financial exchanges and clearing houses. Intercontinental Exchange received quarterly dividends in connection with that ownership.
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According to prosecutors, in 2017, Steed directed Computershare Limited – a company that Intercontinental Exchange used for stock-related services – to pay MCNA LLC for Mars’ dividends from its ownership of Intercontinental Exchange.
This resulted in more than $700,000 in dividend payments being diverted to the MCNA LLC account.
The report notes that in 2023, after Steed used a fraudulent letter claiming to be from the Mars treasurer authorizing him to trade shares from Intercontinental Exchange, he directed Computershare to sell all of Mars’ Intercontinental Exchange shares.
Computershare issued a check for over $11.3 million, which Steed is said to have deposited into the MCNA LLC account.
Prosecutors add that beginning in 2013 and lasting through 2020, Steed used a company he owned called Ibera LLC to invoice Mars for services it did not receive.
This scheme caused Mars to reportedly pay Ibera LLC more than $700,000. Steed also never reported or paid taxes on his stolen income on his 2014 through 2023 tax returns.
On Thursday, Steed pleaded guilty to two counts of wire fraud. Each count could send him to prison for up to 20 years.
Steed also pleaded guilty to one count of tax evasion, which carries a maximum prison sentence of five years.
The report says the government has seized – Steed has agreed to forfeit – more than $18 million from his bank accounts.
The government is also seeking to forfeit, or alternatively liquidate for restitution, a Greenwich home that Steed allegedly purchased using close to $2.3 million in stolen money.
It is further alleged that Steed sent another $2 million to Argentina, where he has dual citizenship, family ties and a ranch.
Steed was arrested on March 26 and is released on a $5 million bond pending sentencing, which will occur Dec. 9.
Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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