The basics:

• Ex-Mars Wrigley exec Paul Steed admits $28M fraud scheme
• Pleaded guilty to wire fraud, tax evasion charges
• Ordered to pay $28.4M restitution plus $10M in back taxes
• Faces up to 45 years in prison; sentencing set for Dec. 9

A former executive at Mars Wrigley has admitted to stealing more than $28 million from the candy maker, according to authorities.

During a Sept. 11 appearance before U.S. District Judge Kari Dooley in Bridgeport, Conn., Paul Steed pleaded guilty to fraud and tax offenses in connection with the long-running scheme against his former employer.

According to the U.S. Attorney’s Office, Stead also agreed to pay $28.4 million in restitution to Mars. Additionally, since he failed to report and pay taxes on the stolen income on his 2014 through 2023 federal tax returns, the Internal Revenue Service said Stead owes an additional $10 million in back taxes.

Though Mars is based in Virginia, the $55 billion family-owned company has longstanding ties to New Jersey, where it has facilities in Newark and Hackettstown.

While working remotely for Mars Wrigley between 2011 and 2023, the 58-year-old Stamford, Conn., resident held several positions, including global price risk manager for the global cocoa business, authorities said. As part of that job, Steed was responsible for managing Mars Wrigley’s participation in the U.S. Department of Agriculture Sugar-Containing Products Re-Export Program, according to authorities.

Decades in prison

A federal indictment accused Stead of placing the majority of stolen funds in an entity he created to mimic an actual Mars company called MCNA LLC (Mars Chocolate North America).

“He then diverted more than $15 million in Mars assets to a bank account he set up in MCNA’s name by directing sugar refineries purchasing Mars’ re-export credits, obtained through the USDA program, to pay MCNA LLC as if it were a legitimate Mars entity,” the U.S. Attorney’s Office said.

Steed also managed to have dividends from a financial services company, which Mars had an ownership stake in, paid into MCNA LLC, and ultimately managed to sell all of Mars’ shares in that financial company, netting him more than $11.3 million, authorities said.

In addition, from 2013 through 2020, Steed used a company he owned called Ibera LLC to invoice Mars for services his employer did not receive. Mars wound up paying Ibera LLC more than $700,000, authorities said.

A dual U.S. and Argentine citizen, Steed was arrested in March and remains free on $5 million bail.

Sentencing is scheduled for Dec. 9. He faces up to 40 years in prison for the two counts of wire fraud and a maximum of five years behind bars for one count of tax evasion.

Authorities said they have since seized more than $18 million from Steed’s bank accounts.

The government is also seeking to liquidate a $2.3 million home in Greenwich that Stead purchased using the stolen cash. Additionally, authorities said Steed sent an additional $2 million to Argentina, where he has relatives and owns a ranch.

‘The action of a single individual’

The snack, sweets and pet food maker’s diverse and expanding portfolio includes brands like M&M’s, Snickers, Ben’s Original, Kind, Dove, Whiskas, Pedigree, Extra, Twix, Royal Canin and Cesar.

Mars is also in the process of buying consumer packaged goods company Kellanova for nearly $36 billion. Kellanova’s snack-heavy business is home to banners such as Cheez-It, Eggo, Pop-Tarts, Rice Krispies Treats and NutriGrain.

In a statement to NJBIZ, a Mars spokesperson said, “This is the action of a single individual who sought to exploit the organization for personal gain. We fully cooperated with law enforcement to see this matter quickly brought to justice and always remain committed to maintaining the highest ethical standards and integrity in all our operations.”

His lawyer, former U.S. Attorney for the District of Connecticut Deidre Daly, did not immediately respond to a request for comment.