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CBS 2's Kristyn Hartman, Pam Zekman and the Associated Press contributed to this report.
CHICAGO (CBS) ― The father of a Chicago alderman was out on bond Wednesday night after appearing in court for charges he took part in a fake ID scheme that stretched from his Little Village photo shop all the way to Mexico.

Elias Munoz, 62, made an initial court appearance before U.S. Magistrate Judge Geraldine Soat Brown, who set bond at $50,000 and ordered Munoz to wear an electronic surveillance device.

The judge said Munoz will have to stay with his daughter and can travel only between the daughter's house and his photo shop -- although he will be allowed to attend his grandson's high school graduation on Friday.

2 Investigator Pam Zekman first reported on the alleged fake ID ring tied to Elías Munoz and his shop, Nuevo Foto Munoz, last year. His son, Ald. Ricardo Munoz said his father is not guilty.

Elias Munoz had no comment as he left court Wednesday facing charges that his photo shop played a big roll in the fake ID business in the Little Village shopping center. But his son spoke for him.

"My dad's business takes pictures, sells pictures," the alderman said.

Elias Munoz is accused of working with ID peddlers who the 2 Investigators found brazenly flashing signs to solicit customers in the shopping center parking lot.

According to an affidavit filed by the government, the case against the elder Munoz relies in part, on a confidential informant who worked as an ID peddler for more than 10 years.

The affidavit describes how Elias Munoz routinely took pictures for the ID peddlers' customers and let them take orders and negotiate their deals inside the photo shop; about 85 transactions a day.

Ricardo Munoz said, "We are very concerned with the charges and obviously, through his lawyers, I believe they will plead not guilty."

But just like federal agents, we also purchased fake these fake ID's for $200 last year.

Last year, Elias Munoz seemed to admit to the 2 Investigators that he had a relationship with the ID peddlers.


When Zekman pointed out that undercover producer Simone Thiessen had paid the peddler right at Foto Munoz for the 2006 investigative report, Elias Munoz replied, "I don't care."

When asked whether he cared if the peddlers did business at Foto Munoz, he replied in Spanish, "There's no business done here."

Zekman pointed out that peddlers stand out his store and signal. He replied, "I don't care if they are outside or inside."

"You don't care?" Zekman asked him.

To that, Munoz replied: "Of course I care. They bring money in here and I work with them."

But when asked directly if he was a part of that illegal operation, Elias Munoz told Zekman, "No, I'm not part of anything. I'm a photographer and that's it."

Ald. Munoz believes the government should be more focused on immigration reforms. "We have 12 to 13 million undocumented immigrants who are all looking for that little piece of paper to go to work, not to go hijack a plane," he said.

Asked if that justifies creating illegal documents, the alderman said, "It doesn't justify creating false documents. It just creates the underworld market."

It's a $2 million- to $3 million-a-year market in Little Village for the international crime organization that the government says was behind the fake ID ring.

Elias Munoz is the 23rd alleged participant to be charged in a continuing investigation dubbed Operation Paper Tiger by the government.

Federal agents conducted a high-profile raid on the strip mall earlier this year, following an investigation that resulted in charges against 22 people who were accused of participating in a multi-million dollar scheme that produced false documents and crossed national borders.

Federal authorities said two participants in the scheme, Julio Leija-Sanchez and Gerardo Salazar-Rodriguez, allegedly even discussed the execution of one of their competitors.

In the raid, agents conducted a search of Munoz's photo shop.

Found in the raid, according to an affidavit released Tuesday, were 2,562 blank state and federal ID cards, more than 800 order forms for fake IDs, and a large display of fake IDs available.

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