St. Paul, MN– A Minnesota roofing contractor and his family are facing serious felony charges after investigators alleged they stole wages from workers and engaged in tax and insurance fraud while working on a public housing project in St. Paul.
Jose Manuel Herrera, 71, principal owner of Bayvista, was charged in Ramsey County with two felony counts of wage theft and six felony counts of tax evasion and insurance fraud. His wife, Carrie Jane Gutbrod-Herrera, 66, and his son, Joseph Earl Herrera, 41, were also charged with felony tax evasion as part-owners of the company.
Prosecutors say Herrera’s company withheld an estimated $118,000 in wages from seven roofing and gutter workers who helped replace roofs and gutters at McDonough Homes, a 580-unit public housing complex in St. Paul. Because the project was publicly funded, workers were entitled to prevailing wages set by the state, which is currently $68.54/hour for roofers and $83.74/hour for gutter workers. Instead, they were allegedly paid between $120 and $200 per day in cash and told to lie about their pay if asked.
The investigation also found that the Herreras underreported income, avoided more than $135,000 in workers’ compensation insurance premiums, failed to pay unemployment contributions, and dodged over $214,000 in state income taxes in 2024 alone.
This case is among the first major prosecutions under Minnesota’s 2019 wage theft law, which makes it a felony to steal more than $1,000 in wages. While wage theft has long been widespread in construction and roofing, it has rarely been prosecuted. That’s beginning to change as unions, regulators, and law enforcement collaborate to hold violators accountable.
Ramsey County Attorney John Choi said more cases are coming. “This will not be the last case. We have many, many more that are in the pipeline.”
The investigation was a coordinated effort by the St. Paul Police Department, the Minnesota Department of Revenue, and the Bureau of Criminal Apprehension, with support from trade unions like the North Central States Regional Council of Carpenters.
Authorities believe the wage theft may extend beyond the seven workers named in the complaint. Choi suggested at least two dozen workers could have been underpaid, potentially shorting employees upwards of $250,000.
Beyond harming workers, the alleged fraud also cheated taxpayers by siphoning funds away from unemployment insurance, workers’ compensation, and state tax revenues.
