Wage theft: Hennepin Co. attorney touts first felony conviction in MN

MINNEAPOLIS (FOX 9) - A 59-year-old Lakeville man was the first person to be convicted of felony wage theft in Minnesota.

According to Hennepin County court documents, Frederick Leon Newell, 59, of Lakeville, was convicted of stealing wages from employees of his company, Integrated Painting Solutions. 

Court records show he will be sentenced on the morning of June 6. 

Felony wage theft conviction

Big picture view:

Newell was convicted on Wednesday of one count of wage theft and one count of theft by swindle. 

The trial revealed that Newell carried out "major economic offenses," according to a news release from the Hennepin County Attorney's Office (HCAO). 

He is expected to be sentenced to probation with a stayed sentence of 21 months if he violates the terms of probation, according to Minnesota sentencing guidelines.

Prosecutors presented evidence that five employees were underpaid by a total of at least $37,000 between June 8, 2020, and Dec. 4, 2020, for painting and cleaning work.

The labor was reportedly for a public works project that was funded by taxpayer money, according to the HCAO.

What they're saying:

At a press conference about the conviction on Thursday, Hennepin County Mary Moriarty said that although this was the first conviction of its kind, it won't be the last.

"It is an important step forward in our efforts to protect workers," Moriarty said. "Wage theft has a huge impact across the country, and it happens all the time, yet it largely goes unchecked. Robberies in this country accounted for $598 million in losses in 2018. While workers lost in excess of $15 billion a year."

Jordan Fry, a representative from the Painters' Union, IUPAT, said "For far too long, working people in our communities have been subjected to the underground economy. An economy that seeks to destroy worker protections. Often, workers are paid in cash, misclassified and exploited by shady business practices."

Associate Director for Civil Rights — Labor Standards Enforcement Division for Minneapolis Brian Walsh released a written statement, saying, "Labor is not just another cost of doing business. Labor is people. This case exemplifies the collaborative effort required to protect everyone from wage theft and payroll fraud."

Other wage theft cases 

Dig deeper:

Another wage theft lawsuit was announced against a dairy farm in Paynesville, Minnesota. 

READ MORE: Evergreen Acres Dairy owner charged over wage theft, abuse allegations

Footage of Ellison announcing the lawsuit can be viewed below: