In Hartford, Connecticut, a case of financial deception has come to light involving Paul Steed, once a respected figure in the sugar market industry. Before his apprehension, Steed was notable for his expertise in the sugar market, working for a subsidiary of Mars Inc., and actively participating in various industry boards and conferences. However, his reputation has taken a dramatic turn following charges of embezzlement, where he is accused of diverting more than $28 million from Mars since about 2013 through multiple fraudulent schemes, including creating fake companies.
The federal indictment accuses Steed, 58, who holds dual citizenship in the United States and Argentina, of committing seven counts of wire fraud and two counts of tax evasion. At his appearance in federal court in Bridgeport, Steed pled not guilty and was detained pending trial due to being considered a flight risk. A U.S. magistrate judge pointed out that while the government has managed to recover $18 million of the stolen funds, several million remain missing. Furthermore, Steed’s strong family ties in Argentina raised concerns about the possibility of him fleeing the country.
His legal defense, represented by federal public defender Phoebe Bodurtha, did not offer immediate comments on the situation. In addition, his wife, Martina Steed, refrained from discussing the case, citing a lack of complete information. Mars Inc., the parent company for which Steed was employed, issued a statement emphasizing that his conduct was that of an isolated individual exploiting the company for personal benefit. The company also expressed its cooperation with law enforcement and its commitment to ethical business operations.
Employed by Mars Wrigley, a branch of McLean, Virginia-based Mars Inc., Steed worked remotely from Stamford as a global price risk manager. This company is known for producing popular confectioneries like M&M’s and Snickers, in addition to other food and pet products. Court documents indicate that Steed and his wife appeared to be living beyond their financial means. Despite Steed’s earnings of approximately $200,000 annually and his wife’s income ranging between $40,000 to $50,000 as a hair stylist, they made significant cash purchases, including a $2.5 million property in Greenwich and a mortgage-free home worth $1 million in Stamford.
The court order also revealed that Steed transferred $2 million to family members and entities in Argentina, where he seemingly owns a cattle and tea ranch. Additionally, in 2012, Steed established a company named Ibera LLC, submitting fraudulent invoices to Mars over several years, siphoning nearly $580,000 through this scheme. From 2016 onward, a larger scheme was implemented, funneling millions of dollars into another of Steed’s creations, MCNA LLC. It is reported that Steed redirected payments meant for Mars from sugar refineries purchasing “re-export credits” to MCNA. The indictment further details how Steed orchestrated a theft exceeding $11 million from the sale of Mars’s shares in a financial services company.
In early 2021, Steed’s standing in the industry earned him an appointment on an agricultural trade advisory committee for sweeteners under then-U.S. Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer. Furthermore, Steed’s profile on LinkedIn highlights his involvement with several sugar industry organizations, including past leadership roles such as the presidency of the New York Sugar Club and participation on various committees related to sugar trading.