Look, whatever you have done with Midtowner, its not too late to end this rationally. If he is still alive, release him, and turn yourself in.
While you're here though. I have to mention you've hit on two of my favorite ideas:
Go after the employers, not the illegals. Send them to jail, that will chill the whole problem fast.
Bring back the orphanages. Kids would turn out better there than with most of these welfare parents.