A former global price risk manager for Mars Inc.'s Wrigley subsidiary, Paul R. Steed, has been indicted in federal court for allegedly embezzling over $28 million from the company. The indictment includes seven counts of wire fraud and two counts of tax evasion. Authorities say Steed allegedly used fake shell companies—MCNA LLC and Ibera LLC—to invoice Mars for services never rendered and reroute funds intended for the company into accounts he controlled.

According to the U.S. Department of Justice, Steed’s scheme involved directing Mars’ business partners, including sugar refineries and Computershare Ltd., to deposit payments and stock dividends into his fraudulent accounts. In one instance, he allegedly forged a letter from Mars' treasurer to authorize the sale of the company’s stock in Intercontinental Exchange (ICE), resulting in an $11.3 million check that he deposited into his shell company’s account.

Prosecutors also claim Steed used the stolen funds to purchase a $2.3 million home in Greenwich, Connecticut, and transferred $2 million to Argentina, where he owns a ranch. Steed has pleaded not guilty and is currently being detained. The DOJ has seized over $18 million and is seeking further forfeiture of assets.

For more information on how to protect your organization from fraud and strengthen your compliance efforts, contact Thomas J. Force, Esq. at [email protected] or call (631) 870-4040. Patriot Group provides legal and regulatory guidance to help businesses prevent, detect, and respond to financial misconduct.