Frederick Newell sentenced in Minnesota’s first wage theft criminal conviction

Frederick Leon Newell, 59, was sentenced Friday on one count of wage theft and one count of theft by swindle, following the first wage theft criminal conviction in state history.

In accordance with the Minnesota Sentencing Guidelines, Mr. Newell was given stays of imposition of sentence on both counts and a probationary period of three years, and will be required to complete 200 hours of community work service. He was also ordered to pay more than $42,000 in restitution and may not bid on or participate in new public contracts.

His trial ran from Jan. 16, 2025, to Jan. 22, 2025, and the court delivered the verdict on April 9, 2025.

“Mr. Newell was entrusted with public funds to pay his employees for their labor on a public works project,” Hennepin County Attorney Mary Moriarty said. “Instead, he siphoned the money they earned for himself. I am proud of our prosecutors’ efforts in securing the first wage theft criminal conviction in Minnesota history; it is a major step toward greater protection for workers.”

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 the United States accounted for $598 million in losses in 2018, while workers lose more than $15 billion per year. Stealing from employees destabilizes working-class families, worsens poverty, and makes our communities less safe.

Case Number: 27-CR-23-445

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