Hennepin County Attorney’s Office secures Minnesota’s first wage theft criminal conviction

Frederick Leon Newell, 59, was convicted Wednesday 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 wage-theft conviction is the first of its kind in Minnesota. It is an important step forward in our efforts to protect workers,” Hennepin County Attorney Mary Moriarty said. “This type of behavior will not be tolerated. Mr. Newell was entrusted with public funds to pay his staff for their labor on a public works project. Instead, he siphoned their money for himself."

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 for the wage theft conviction, 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 at least $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.

Robberies in this country accounted for $598 million in losses in 2018, while workers lose more than $15 billion per year. Stealing from employees destabilizes working-class communities, undermines economic mobility, exacerbates poverty, and ultimately makes our community less safe.

Rep. Cedrick Frazier, member of the House Workforce, Labor, and Economic Development Committee:

"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.

“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. This verdict 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."

Brian Walsh, Associate Director, Civil Rights – Labor Standards Enforcement Division for the City of Minneapolis:

“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.”

Brian Merle Payne, Executive Director, Centro de Trabajadores Unidos en Lucha (CTUL):

"We are glad to see Newell is being held accountable for his actions and hope the workers who were affected feel a sense of justice from this verdict. And we know that too many non-union construction workers continue to experience wage theft every day, destabilizing the families and communities who rely on those wages. We hope the State continues to pursue and take these cases seriously, and that it sends a message to those who benefit from the system of exploitation that exists in construction - like contractors and developers - that they also have a responsibility to take steps to prevent this from happening on their jobsites.”

Dan McConnell, President, Minnesota Building and Construction Trades Council:

“This is a landmark victory for workers in Minnesota. Wage theft must be taken seriously by our legal system wherever it occurs, and this is a step in the right direction. Workers rely on the wages they earn to feed their families – any business that attempts to steal those wages must be held accountable. The Minnesota Building and Construction Trades Council will always stand up for the fair treatment and compensation of workers in our state.”

Mr. Newell’s sentencing is currently scheduled for June 6 at 10 a.m.

Case Number: 27-CR-23-445

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