INDIANA -- Federal agents were seen raiding several properties on Wednesday in northwest Indiana, including a home in Schererville, and two restaurants: Paragon in Hobart, and Gino's Steakhouse in Merrillville. 

Boxes and boxes of documents and other items were removed from the Schererville home on Wednesday morning, and a newly unsealed federal indictment alleges that the two Northwest Indiana restaurants were used to cover up a multi-state gambling, extortion, and money-laundering ring for years.

22 people have been indicted, but the alleged leaders of the criminal operation are James Gerodemos and Dean Gialamas, who prosecutors say led the criminal operation. James Gerodemos has previously been convicted of dealing explosive materials without a license, when he was found to be in possession of 16,000 pounds of commercial and illegal fireworks, and served six months in prison for that conviction. 

The federal indictment alleges the restaurant owner, James Gerodemos, known as "Jimmy the Greek," and Dean Gialamas ran a structured criminal organization involving more than 20 individuals with defined roles including leaders, bookies, collectors, and enforcers. Federal agents claim the two well-known dining establishments ran a sports betting enterprise that generated up to $900,000 a year on the Super Bowl alone and used intimidation to collect debts.

The investigation is ongoing, and a U.S. attorney will hold a press conference in Hammond on Thursday to share more details.