BRIDGEPORT – A Stamford man who worked for the candy maker Mars Wrigley was indicted Tuesday by a federal grand jury for allegedly defrauding the candy maker of more than $28 million, according to Marc Silverman, acting U.S. Attorney for the District of Connecticut.
Paul Steed, 58, of Stamford was arrested this morning and appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport. He pleaded not guilty, and is currently detained.
According to statements made in court, Steed is alleged to have stolen more than $28 million from Mars. More than $18 million was seized today for forfeiture, and the government is seeking to forfeit a Greenwich home that Steed is alleged to have purchased with nearly $2.3 million in stolen funds. It is alleged that another $2 million was sent by Steed to Argentina, where he is a dual citizen, has family ties, and owns a ranch.
Acting U.S. Attorney Silverman stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Steed could not be reached for comment.
The indictment alleges that between approximately 2011 and 2023 Steed was employed by Mars Wrigley, a subsidiary of Mars. Inc., working remotely from his home in Stamford. Steed served as global price risk manager for Mars Wrigley’s Global Cocoa Enterprise. As part of his job, Steed was responsible for managing Mars Wrigley’s participation in the U.S. Department of Agriculture Sugar-Containing Products Re-Export Program.
The indictment reads that in approximately 2016, Steed created MCNA LLC to mimic an actual Mars entity called Mars Chocolate North America. He then diverted millions of dollars in Mars assets to a bank account he set up in MCNA’s name by directing sugar refineries purchasing Mars’s re-export credits, obtained through the USDA program, to pay MCNA LLC as if it were a legitimate Mars entity, according to the indictment.
The indictment also alleges that Mars had an ownership interest in Intercontinental Exchange, Inc. , a financial services company that operated financial exchanges and clearing houses, and received quarterly dividends in connection with that ownership. In 2017, Steed directed Computershare Limited, a company that ICE utilized for stock-related services, to pay MCNA LLC for Mars’ dividends from its ICE shares. As a result, more than $700,000 in dividend payments were diverted to the MCNA LLC account.
According to a LinkedIn post by JSG Commodities Inc. – a brokerage in the sugar, cocoa, and coffee markets, Steed was scheduled to speak at a panel at its New York City conference in December 2024. The post touted the “strong price risk management performance” while working at Mars.
“Paul consistently delivered strong price risk management performance in his time at Mars. Over thirteen years, the Sugar Category has averaged annual price risk performance versus market of over 2%, never having a down year – an exceptional achievement!
“Paul is recognized as a sugar market expert by the broader sugar community, having representing Mars in key industry forums. Paul has been honored to serve as a past President of the New York Sugar Club, a membership group made up of all sugar industry stakeholders from around the world. He also served on the Intercontinental Exchange’s Sugar Contract Committee and as a Board Member of the U.S. Sugar User’s Association. Paul also served on the United States Department of Agriculture’s Technical Advisory Committee for Sweeteners.”
In 2023, after Steed had used a fraudulent letter purportedly from the Mars treasurer authorizing him to trade ICE shares, he directed Computershare to sell Mars’s ICE shares entirely. Computershare issued a check in the amount of more than $11.3 million, which Steed deposited into the MCNA LLC account.
The indictment further alleges that from 2013 through 2020 Steed used a company he owned called Ibera LLC to invoice Mars for services Mars did not receive. Mars paid Ibera LLC approximately $580,000 through this scheme.
The indictment charges Steed with seven counts of wire fraud, an offense that carries a maximum term of imprisonment on each count. He is also charged with two counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count, for failing to report and pay taxes on his stolen income, as alleged.
The fraud case was investigated by Anish Shukla, acting special agent in charge of the New Haven Division of the FBI; Harry Chavis, special agent in charge of IRS criminal investigation in New England; and Charmeka Parker, special agent in charge of the Northeast Region of the USDA – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
