The owners and operators of the Paragon Restaurant in Schererville have been
indicted in federal court, the U.S. Attorney’s Office for the Northern
District of Indiana said.
Michael McClellan, 38, of Richton Park, Ill., is charged with one count of
harboring illegal aliens and three of mail fraud, the U.S. Attorney’s Office
said; both McClellan and his wife, Tina McClellan, are also charged with one
count of making money transactions in criminally derived property.
According to the indictment, between February 2009 and March 2010 Michael
McClellan harbored illegal aliens at the Paragon Restaurant and at a home he
owned located behind the restaurant. He also submitted false quarterly
reports which failed to account for restaurant employees he had paid in cash
in a scheme to defraud the Indiana Department of Workforce Development out
of unemployment insurance tax contributions, the indictment alleges.
In addition, between 2006 and 2010 the McClellans, as owners of the T & M
Daycare center, provided false information to the State of Illinois claiming
certain children had attended the daycare, when, in fact, they had not,
causing reimbursements of at least $200,000 from the State of Illinois and
Healthy Start program, which funds they used to purchase the home located
behind the Paragon Restaurant, the indictment alleges.
“Homeland Security Investigations holds employers accountable when they
knowingly hire an illegal alien workforce to gain an unfair advantage over
their law-abiding competitors,” said Gary Hartwig, special investigator in
charge of HSI Chicago. “Our goal is to level the playing field for those
businesses that p
The case was investigated by the U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations, the Internal Revenue Service-Criminal
Investigation Division, the U.S. Department of Labor-Office of the Inspector
General, the Social Security Administration-Office of the Inspector General,
and the Indiana Department of Workforce Development.