Lakeville man charged in wage theft scheme

LAKEVILLE, Minn – Charges have been filed after a man allegedly stole over $35,000 from his employees.

According to the Hennepin County Attorney's Office, Frederick Newell is charged with wage theft and theft by swindle for underpaying or neglecting to pay his employees.

Newell owns and operates a commercial painting company called Integrated Painting Solutions. In 2019, IPS was to provide painting labor and materials for the Redwell apartment complex in north Minneapolis. 

Because the City of Minneapolis had approved tax increment financing for the development of the apartment complex, contractors were required to pay employees a wage rate for their hours worked. As part of their contract, Newell received compensation from the general contractor to pay this wage rate to his workers.

Despite having received these funds, Newell did not forward them to his employees.

Allegedly, one victim worked for 32 hours in June 2020 and was due $1,779.84 for his labor. He did not receive a paycheck for this work. IPS filed a document with the City of Minneapolis claiming that he had not worked those hours.

Later that summer in August 2020, five IPS employees were underpaid by a total of $35,221.60.

Hennepin County Attorney Mike Freeman offered a warning to those engaging in wage theft, saying, "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."