Mars embezzlement scheme cost the company $28.4 million, court orders restitution

A Stamford, Conn., man was sentenced to 63 months in federal prison for fraud and tax offenses related to the theft of more than $28 million from Mars Inc., his former employer, according to the U.S. Attorney’s Office for the District of Connecticut.

U.S. District Judge Kari A. Dooley ordered Paul R. Steed, 59, to serve the prison term followed by three years of supervised release. The court also ordered restitution of $28,410,489 to Mars and $10,310,680 in back taxes to the Internal Revenue Service, prosecutors said.

Steed worked remotely from Stamford while employed by Mars Wrigley, a Mars subsidiary, from about 2011 to 2023, according to court documents and statements. He also served as global price risk manager for Mars Wrigley’s Global Cocoa Enterprise. Prosecutors said his role included managing participation in the U.S. Department of Agriculture Sugar-Containing Products Re-Export Program.

Federal officials said Steed created a new entity, MCNA LLC, in about 2016 to mimic a legitimate Mars entity and then directed payments intended for Mars into a bank account he set up under the same name. Prosecutors said more than $15 million was diverted through payments connected to re-export credits in the U.S. Department of Agriculture program.

Authorities also alleged Steed redirected Mars dividend payments tied to an ownership interest in Intercontinental Exchange Inc. to the same MCNA LLC account. He later used a fraudulent letter purportedly from a Mars treasurer to authorize the sale of Mars’ Intercontinental Exchange shares. Prosecutors said a check for more than $11.3 million was deposited into the account he had created.

In a separate scheme, prosecutors said Steed used another company he owned, Ibera LLC, to invoice Mars for services not provided, resulting in more than $700,000 in payments.

The government has seized, and Steed agreed to forfeit, more than $18 million from bank accounts he controlled, and prosecutors said the government is seeking to forfeit or liquidate for restitution a Greenwich home purchased with nearly $2.3 million in stolen funds. Prosecutors also said Steed sent about $2 million to Argentina, where he is a dual citizen.

Steed was arrested on March 26, 2025, and pleaded guilty on September 11, 2025, to two counts of wire fraud, according to the U.S. attorney’s office. He is required to report to prison on March 5.