Paynesville Dairy Farmer Charged With Racketeering and Wage Theft

ST. CLOUD (WJON News) -- Minnesota Attorney General Keith Ellison has charged a Paynesville Dairy Farm owner with racketeering and wage theft less than a year after reaching a settlement with the owners over back wages and sub-standard housing conditions.

Ellison has filed one count of racketeering and four counts of wage theft in excess of $5,000 against Keith Schaefer of Richmond. Schaefer owns Evergreen Acres Dairy, LLC in Paynesville.

According to the criminal complaint filed in Stearns County District Court, Schaefer systematically deprived workers of their full wages, failed to pay workers for overtime, and withheld final paychecks when the workers left the company.

Schaefer is also accused of threatening employees with physical harm or death and threatening to report them to immigration authorities.

The Attorney General's Office reached a settlement with Schaefer last October where he and co-owner Megan Hill agreed to pay $250,000 in back wages and bring employee housing up to standard.

Schaefer's first appearance in court is scheduled for March 17th.

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