June 9, 2005

Grand Rapids - Thirty-eight search warrants were conducted at locations across the Lower Peninsula yesterday in connection with a national and international investigation led by the Michigan State Police (MSP) involving tax fraud and immigration violations at a group of restaurants.

Search warrants, authorized in 59th District Court in Walker by Judge Peter Versuis, were served at 17 restaurants and 21 near-by residences where it is suspected undocumented workers, who had been trafficked into Michigan to work at these restaurants, were being housed.  The restaurants are located in Allegan, Calhoun, Emmet, Gratiot, Isabella, Kent, Montcalm, Muskegon, Newaygo, Oakland, Ottawa and Wexford counties.  Investigators believe the restaurants are either owned by the same family or the owners are related to each other.

The search warrants resulted in the arrest of two suspected undocumented workers for driver’s license violations.  These individuals were lodged in the Montcalm County Jail.  In addition, at least 13 workers were found to have deportation orders.  These individuals were turned over to US Immigration and Customs Enforcement for processing.  Approximately, $400,000 in cash was also seized.

Investigators also suspect the restaurants may have cheated the state and federal government out of several million dollars in sales, unemployment and use taxes.  Investigators suspect the owners were only claiming approximately one-third of their income, with a portion of the proceeds being sent out of the country.

Since many of the documents seized during the search warrants require translation, it may be some time before investigators know the full outcome of what they found. 

When the investigation is complete, the case against each restaurant will be turned over to the county’s prosecutor for review. 

“An investigation of this magnitude is a huge undertaking and could not have been possible without the assistance of many other agencies,” said D/F/Lt. Curt Schram of the MSP Sixth District Headquarters.  “Especially in times of reduced personnel and resources, I am proud to see the criminal justice community come together to address complex criminal activity that costs the state and federal government money.”

Agencies assisting the MSP in this investigation included:

Alma Police Department

Cadillac Police Department

Grand Rapids Police Department

Grandville Police Department

Gratiot County Sheriff’s Department

Greenville Police Department

Montcalm County Sheriff’s Department

Mt. Pleasant Police Department

Muskegon Police Department

Muskegon Township Police Department

Newaygo Police Department

Norton Shores Police Department

Waterford Township Police Department

Wexford County Sheriff’s Department

Wyoming Police Department

Michigan Department of Labor and Economic Growth

Michigan Department of Natural Resources

Michigan Secretary of State

Michigan Department of Treasury

United States Immigration and Customs Enforcement

United States Department of Labor

Read more press releases from the Michigan State Police.