Police conducted undercover operations at the eatery to substantiate claims of alcohol sales to minors.
Some residents blame a recent Myrtle Avenue shooting on a rowdy scene at nearby New Sapolo Restaurant.
High-end wine shops and convenience stores allegedly sold alcohol to underage decoys, the SLA said.
The State Liquor Authority says Papasito sold alcohol to patrons as young as 18 years old.
Thirty-seven grocery stores in Manhattan were recently busted for selling alcohol to underage customers, the State Liquor Authority announced Friday.
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