Former Candy Exec Stole $28M From Mars

A former executive for a subsidiary of candymaker Mars Inc. has pleaded guilty 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. The Stamford resident also agreed to pay $28.4 million in restitution to Mars and owes another $10 million in back taxes to the Internal Revenue Service, US Attorney for Connecticut David Sullivan said in a statement.

Steed was once a respected sugar market expert for Mars Wrigley, where his last position was global price risk manager, the AP reports. The company is a subsidiary of McLean, Virginia-based Mars Inc., the maker of M&M's, Snickers, Skittles, and Doublemint gum, among other products. 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.

Steed "failed to report and pay taxes on his stolen income on his 2014 through 2023 federal tax returns," the US Attorney's office said. Authorities say they have seized more than $18 million from Steed's bank accounts, and Steed has agreed to forfeit the money. Prosecutors say Steed sent another $2 million to Argentina, where he has relatives and owns a ranch. He pleaded guilty to two counts of wire fraud and one count of tax evasion. The offenses carry a maximum sentence of 43 years in prison, but under his plea deal, he is likely to face a sentence of seven to nine years in December, the Stamford Advocate reports.