Paul Steed, 58, of Stamford, pleaded guilty Thursday to fraud and tax offenses he committed while defrauding the chocolate company out of millions of dollars.
BRIDGEPORT, Conn. — A former Connecticut employee of the chocolate manufacturer Mars, Inc. pleaded guilty Thursday to committing fraud and tax crimes while defrauding the company out of millions of dollars.
Paul Steed, 58, of Stamford, made the plea in Bridgeport federal court.
RELATED: Former Mars chocolate employee from Connecticut allegedly defrauded company out of $28 million
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.
Court documents and statements show that between 2011 and 2023, Steed worked for Mars Wrigley, a subsidiary of Mars. He worked remotely from his Stamford home.
Steed held several positions while employed there. His last role with the company was as Global Price Risk Manager for Mars Wrigley’s Global Cocoa Enterprise.
At this time, Steed was responsible for managing Mars Wrigley’s participation 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 then reportedly diverted more than $15 million in Mars assets to a bank account he created in MCNA’s name by directing sugar refineries purchasing Mars’ re-export credits – acquired through the USDA program – to pay MCNA LLC as if it were a legitimate entity.
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.
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.
Do you have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com.
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iTunes: Click here to download
Google Play: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.