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Attorney General levels new charges at Internet café owners

Date: 4/4/2012

April 4, 2012

By G. Michael Dobbs

news@thereminder.com

BOSTON — The boom industry of "Internet cafés" has gone bust in most communities and the owners of the first such local business in the area, Cafeno's, is facing additional legal problems.

According to information released by the Office of Attorney General (AG), Steven Sheldon, the owner of "Cafeno's" Internet café in Chicopee, was indicted on March 26 by a Statewide Grand Jury on charges of aiding, assisting, procuring, counseling or advising a false return and advertising lottery tickets. The corporation has been indicted on additional charges in connection with operating an illegal slot parlor. The new indictments are related to allegations of falsifying state tax returns and illegal lottery advertising.

Sheldon and his business partner, Stephen Megliola of Longmeadow, were arraigned in January in Hampden Superior Court on charges of organizing or promoting gambling services and operating an illegal lottery.

Sheldon was also arraigned on charges of allowing lotteries in a building and the sale and advertising of lottery tickets. Their corporation, Cafeno's Inc., was arraigned on the same charges.

The two men pleaded not guilty.

In September 2010, the AG's Office began an investigation into Cafeno's. Evidence gathered during the course of the investigation demonstrated that patrons of this Internet café were paying nearly exclusively for the right to gamble, according to the office's findings.

When Cafeno's opened in the fall of 2009, Sheldon told that although patrons can play casino style games on computers in an atmosphere that resembles a casino and they can win money, he emphasized there is no gambling at the establishment.

He said at the time, although money can be won with the games, the games were sweepstakes. He said legally the games are no different than "pulling a tab off a cup at McDonald's."

"This is totally, totally lawful," he said then.

Authorities now allege that patrons were not simply paying for Internet time and playing a free sweepstakes. The AG's Office also allege that "no purchase required" opportunities were trivial and insignificant and gambling was the only clear purpose for these cafés.

"Cafeno's" ceased operation in March 2011 after it was raided by State Police and the Chicopee Police Department.

"We allege that in addition to operating an illegal, unregulated slot parlor, this defendant [Sheldon] also falsified state tax returns and promoted the lottery aspect of his business, in direct violation of state law," AG Martha Coakley said.

The AG's investigations into various Internet cafés throughout the Commonwealth remain ongoing, although a spokesperson could not confirm or deny if any other local business was under scrutiny.



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