A former executive for a subsidiary of candymaker Mars Inc. pleaded guilty Thursday to fraud and tax charges in connection with his theft of $28 million from the company, federal prosecutors said.
Paul Steed, 58, appeared in federal court in Bridgeport, Connecticut. He also agreed to pay $28.4 million in restitution to Mars and owes another $10 million in back taxes to the Internal Revenue Service, U.S. Attorney for Connecticut David Sullivan said in a statement.
Steed, of Stamford, Connecticut, who is free on $5 million bail, did not immediately return messages left at phone numbers and emails listed for him in public records. His lawyer, former U.S. Attorney for Connecticut Deirdre Daly, did not immediately return phone and email messages Thursday.
A dual U.S. and Argentine citizen, Steed was once a respected sugar market expert for Mars Wrigley, where his last position was global price risk manager. The company is a subsidiary of McLean, Virginia-based Mars Inc., the maker of M&M’s, Snickers, Skittles, Altoids mints and Doublemint gum, as well as other food products and pet food.
A federal indictment accused him of stealing from Mars beginning in about 2013 through various schemes, including diverting funds to companies he set up. Steed sent the lion’s share of the stolen funds, more than $26 million, to one of his companies, MCNA LLC, which was created to mimic an actual Mars company, Mars Chocolate North America, prosecutors said.
Authorities say they have seized more than $18 million from Steed’s bank accounts, and Steed has agreed to forfeit the money. The government is also seeking to liquidate a home in Greenwich, Connecticut, that Steed allegedly purchased using $2.3 million of the stolen cash. Prosecutors say Steed sent another $2 million to Argentina, where he has relatives and owns a ranch.
Steed pleaded guilty to two counts of wire fraud and one count of tax evasion. Sentencing is set for Dec. 9.
The Associated Press contributed to this report.