Uber: 2024 Fraud & Wage Theft Scandal


## A Year in Review: Reporting on Work, Money, and Politics in Minnesota

2024 took me to some unexpected corners of Minnesota. I found myself in a church basement interviewing dairy farm workers outside St. Cloud, repeatedly stationed in a parking lot near the airport, and even participating in a virtual classroom with a Minnesota instructor thousands of miles away. However, my year also included many expected locations: picket lines, job sites, and the state Capitol building. As the year concludes, I’m grateful for the opportunity to have pursued stories across the state focusing on work, money, and politics. Here are some highlights from my reporting in 2024.

The Fight for Fair Pay for Rideshare Drivers

Minnesota became the second state to establish minimum pay rates for Uber and Lyft drivers via state statute in May 2024. This victory followed a challenging 18-month campaign spearheaded by drivers, which included a gubernatorial veto, conflicts among driver advocacy groups, threats from the companies to leave the Twin Cities, the largest driver pay study of its kind, and a tense standoff between Minneapolis City Council members and state lawmakers.

The conflict appeared simple at first glance: low-wage drivers lacking employee protections against powerful tech giants. However, the complexities of improving working conditions created divisions among drivers and lawmakers alike, a topic I explored in a previous article [link to article, if available]. The Minneapolis City Council’s attempt to enact its own minimum rates resulted in a tense showdown with Uber and Lyft, who threatened to withdraw from the city. Several new companies—with names like Moov, Wridz, and MyWeels—emerged, promising to fill the void, but the state legislature ultimately preempted the city ordinance, prohibiting cities from setting their own rates. Today, those new companies hold little relevance in the Twin Cities market.

The statewide minimum pay rates, effective December 1st, are projected to increase driver pay by approximately 14% compared to 2022. The legislation also enhances driver protections against unfair deactivation, expands insurance coverage starting January 1st, and mandates that the ride-sharing companies contract with a non-profit to provide driver services (although Uber and Lyft have yet to publicly identify their partners). For a detailed analysis of the law, please see [link to article, if available].

Wage Theft on a Minnesota Dairy Farm

In January, Attorney General Keith Ellison announced a $3 million wage theft lawsuit against a central Minnesota dairy farm, Evergreen Acres, a case intended to serve as an example for an industry known for labor exploitation. However, the outcome highlighted the systemic challenges in prosecuting wage theft, even though it’s a felony. The case underscored the perception of bias within the legal system favoring the wealthy and white.

The lawsuit, one of the largest wage theft cases ever brought by the Attorney General’s office, alleged that hundreds of undocumented workers were defrauded of millions in wages. The lawsuit detailed appalling conditions, including workers sharing beds after 12-hour shifts and having rent automatically deducted from their already meager wages. Workers lived in garages and barns, conditions reminiscent of Upton Sinclair’s *The Jungle*. The farm owner, Keith Schaefer, was also accused of threatening and assaulting workers.

The case ultimately settled for $250,000—a fraction of the estimated amount owed to the workers. Schaefer and his daughter, Megan Hill, admitted no wrongdoing, agreeing only to improve worker housing and submit payroll records to the Attorney General’s office for three years. A worker, speaking through an interpreter at a November meeting I attended near St. Cloud, expressed deep skepticism about the impact of the settlement, fearing other farms would continue similar practices. The lack of criminal charges, despite the scale of the theft, remains a significant concern. The Attorney General’s office cited its lack of original criminal jurisdiction, requiring referral to local prosecutors who have yet to take action.

The Ilhan Omar Winery Controversy

A surprising discovery this year involved U.S. Representative Ilhan Omar and her husband’s involvement in a California winery, eStCru, alongside a long-time Democratic operative. While Rep. Omar disclosed spousal income from the winery on her financial disclosures, my investigation stemmed from a lawsuit filed by an investor, Naeem Mohd, accusing Rep. Omar’s husband, Tim Mynett, and his business partner, Will Hailer, of fraud.

The lawsuit alleged that Mynett and Hailer failed to deliver on a promise to triple Mohd’s $300,000 investment within 18 months, returning only the original investment a month late. The winery’s winemaker also reported working for months without pay before resigning. A settlement was reached in September, though the details remain undisclosed. Mynett and Hailer stated they were working to sell the winery’s intellectual property and trademarks. This wasn’t their only business challenge. A separate lawsuit filed by two South Dakota cannabis companies accused Hailer of fraud concerning a company he co-founded with Mynett. While Mynett was mentioned in the lawsuit, he was not named as a defendant, and he claimed to have withdrawn from the venture in early 2022. Hailer settled the lawsuit for $1.2 million in August.

Alleged Misuse of a State Tax Credit for K-12 Education

My final investigation of the year examined the alleged misuse of a state tax credit designed to assist low-income families with tutoring, music lessons, and educational supplies. Three women brought to my attention the situation where dozens of mothers lost thousands of dollars from their tax refunds due to two tutoring companies—Achievers Tutoring and Success Tutoring. These companies promised to help children recover from pandemic learning loss but provided only online instruction from foreign teachers.

Unraveling the scam proved complex. The story involved Filipino online tutors, an alleged scammer lobbying legislators, violent threats against mothers, a state lawmaker’s former employer, and significant bureaucratic obstacles. These allegations are part of a larger crisis of fraud in state government, involving hundreds of millions of dollars allegedly misappropriated from programs funding child nutrition, autism services, transportation, and interpretation assistance. I will continue to follow this story as mothers seek restitution and lawmakers vow to combat fraud, waste, and abuse within social service programs.

(Author Bio and Copyright Information as provided in original text would follow here)

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *