Saint Paul, MN- On Wednesday, Frederick Leon Newell, 59, was convicted of one count of wage theft and one count of theft by swindle. This is the first wage theft criminal conviction in Minnesota history.
The bench trial ran from Jan. 16, 2025, to Jan. 22, 2025, and the court delivered its verdict on April 9, 2025.
"This guilty verdict marks a historic milestone in our ongoing commitment to workplace justice. When the legislature amended Minnesota's theft statute in 2019, we took a significant step by explicitly recognizing wage theft as a criminal offense. However, our work to protect hardworking Minnesotans isn't complete,” said Representative Cedrick Frazier, member of the House Workforce, Labor, and Economic Development Committee.
“To truly ensure that all employees receive the compensation they've rightfully earned, prosecutors need effective tools to uphold these laws. That's why I've introduced House File 689, which would grant County Attorneys the authority to issue administrative subpoenas for wage theft investigations. This measured approach would enable proper examination of relevant payroll records when legitimate concerns arise, while maintaining appropriate procedural safeguards.
“This balanced legislation benefits everyone: workers receive the protections they deserve; ethical businesses aren't disadvantaged by competitors who cut corners, and our justice system gains the necessary resources to enforce existing laws effectively. The verdict today demonstrates what's possible when we take wage theft seriously. Now, let's provide our prosecutors with the proper tools they need to build upon this progress and ensure dignity and fairness in every Minnesota workplace."
The court also found that Mr. Newell had committed “major economic offenses,” which may lead to a sentence more serious than the presumptive.
The presumptive sentence, in accordance with the Minnesota Sentencing Guidelines, is a stayed sentence of 21 months.
In total, five employees of Mr. Newell’s company were underpaid by a total of $37,001.44 between June 8, 2020, and Dec. 4, 2020, for painting and cleaning labor.
On the theft by swindle charge, Mr. Newell continued to accept payments from a general contractor over the course of a project despite knowing that his company was in financial distress, was not paying prevailing wage, and was concealing hours worked by employees.
Sentencing is currently scheduled for June 6 at 10 a.m.
###