Lakeville Boss Charged Under New Wage Theft Law

MINNEAPOLIS — A Lakeville man has been charged in the theft of more than $35,000 from his employees, Hennepin County Attorney Mike Freeman announced Friday.

Frederick Leon Newell, 57, faces one count of wage theft and one count of theft by swindle.

According to Freeman, Newell's case is one of the first prosecuted under Minnesota's wage theft law, which was passed in 2019.

"These are the kinds of cases that caused us to work with labor on a statewide system for prosecuting wage theft," Freeman said in a news release. "The working people of Minnesota deserve fair pay for their labor. If you are a Minnesota employer stealing from your employees, you will be investigated and charged."

Newell owns and operates a commercial painting company called Integrated Painting Solutions (IPS), according to authorities.

IPS won a bid to provide painting labor and materials in 2019 for the Redwell apartment complex in north Minneapolis, investigators said. In 2020, IPS agreed to provide cleaning services for the apartment complex, according to authorities.

However, Newell and IPS intentionally withheld funds that were to be paid to his employees, investigators said.

One painter worked for 32 hours in June 2020 — earning around $1,800 — but he did not receive a paycheck for that work, according to authorities.

In August 2020, five employees painted and cleaned but went underpaid by a combined total of $35,221.60, investigators said.