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Vending firm faces gambling charges
AG says N. Andover company supplied slots, poker machines
By Dan Adams
Globe Staff

The owners of North Andover-based Four Star Vending Inc. have been charged with using the firm to run an illegal gambling and money laundering scheme, Attorney General Maura Healey’s office announced Tuesday.

Healey’s office said Four Star Vending placed video slot and poker machines that could be used for gambling in bars and social clubs throughout Massachusetts and New York, then split the proceeds with those establishments’ owners.

The illicit income, totaling more than $1 million, was laundered through Four Star’s legitimate business supplying and servicing ATMs, jukeboxes, and vending machines to various retail customers, according to a press release.

The company and its owners, Middleton resident William Morley and his wife, Bonnie Morley, were arraigned Tuesday in Essex Superior Court on a number of criminal charges, including three gambling-related offenses, money laundering, and conspiracy.

The Morleys pleaded not guilty and were released on personal recognizance. The couple and their company were indicted by a grand jury in March following an investigation over several months that was spearheaded by State Police detectives.

“We allege the owners and employees of this gaming company used their business as a front to illegally launder over a million dollars for their own profit,’’ Healey said in a statement.

Terrence Kennedy, the defense attorney for William Morley, said: “We are hopeful there will be a fairly quick resolution to the matter.’’ He added that Four Star Vending was no longer operating.

Asked whether the company’s other business was merely a front for the alleged gambling scheme, Kennedy said, “I completely disagree with that.’’ He declined to elaborate.

Prosecutors and state lottery officials said the alleged gambling ring put consumers and state revenue at risk.

“These illegal gaming devices . . . allowed the defendants to pick the pockets of countless unsuspecting patrons,’’ Essex District Attorney Jonathan Blodgett said in a statement.

Healey’s office also indicted two others on gambling and conspiracy charges in connection with the alleged operation.

One, Richard Calhoun of Peabody, was an employee of Four Star Vending. Reached by phone, Calhoun declined to comment.

The other, Anthony Mazzola of Newton, was a manager of one of the social clubs that allegedly operated gambling machines supplied by Four Star.

A spokeswoman for Healey declined to name the club for which Mazzola worked. A message seeking comment left at Mazzola’s home was not immediately returned.

Both will be arraigned at later dates.

The charges build on the work of investigators at the state Alcoholic Beverages Control Commission, who in recent years have cited a series of private social clubs in the state — including five in Beverly — for running illegal betting operations, often involving video poker machines in back rooms.

In many of the ABCC cases, the machines had been altered to include “knock-off switches’’ that allowed in-the-know players to print payout slips that could be handed to a bartender or club manager in exchange for cash.

That was the case at the Italian Community Club in Beverly, which last year received a 10-day suspension of its liquor license after ABCC investigators found seven gambling machines there labeled “for amusement only.’’

Dan Adams can be reached at daniel.adams@globe.com. Follow him on Twitter @Dan_Adams86.