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OAKLAND — Flashing a badge and toting official-looking documents, the man would show up at small businesses across Oakland clad in a blazer and tie claiming to be a state or federal Labor Department inspector.
He would survey the premises, finding what he said were violations of labor rules and regulations that could cost the businesses between $10,000 and $33,000 in fines.
But then he would tell the nervous merchant the violations would not be reported if they could pay him a small amount — between $350 and $800 — by check, and he would go away.
Most paid out of fear. But they did so to a phony inspector who should never have received a dime, police said.
Suspect Michael Bolanos was arrested Nov. 4 and has been charged with multiple misdemeanor counts of impersonating a state officer and felony counts of theft and extortion involving 10 victims who have identified him so far.
Bolanos, who is thought to be from Hayward, was running a scam that netted him thousands of dollars from victims, police said. Because he has used different birth dates, police believe he could be 33 or 35.
Officer Dave Wong said Bolanos did not work for any government agency but was "a con artist shaking down victims."
He pleaded not guilty to the charges Nov. 20 and is due back in court Dec. 23. He remains free on $25,000 bail.
Wong said Bolanos admitted his involvement in the scam when he was initially charged in
Neither he or the public defender representing him could be reached for comment Wednesday.
Caught on tape
The suspected masquerade came to light Oct. 22 when Officer Jennifer Sena was contacted by the owner of a San Pablo Avenue gas station who had captured Bolanos' act on videotape when he took $500 from an intimidated employee. The previous day Sena, who is with the department's Alcohol Beverage Action Team, or ABAT, had led a training class for alcohol and tobacco store owners in which she told them they could call her with any concerns.
Police began investigating and so far have found 19 possible victims in Oakland going back to March and at least that many in other parts of the Bay Area, including Concord, El Sobrante, El Cerrito, San Leandro, Hayward, San Jose, and San Francisco, Wong said.
The Oakland Police Department is the only agency to file charges against Bolanos so far. It is expected that the state and possibly the FBI will soon join the probe.
The businesses affected include motels, mom-and-pop stores, gas stations, tire shops and small restaurants and taverns. The majority are owned by Latinos or Middle Easterners, police said.
'Scared to say anything'
"Everyone was scared to say anything because they thought he was legitimate," said Sena, who has distributed 500 merchant safety alert fliers with Bolanos' photo and details of the scam to Oakland alcohol and tobacco businesses.
Wong said Bolanos would show up with a badge and binder with official-looking documents he believes were downloaded from Web sites saying he was there to inspect the premises looking for violations. If they balked about letting him do an inspection he would threaten to bring in more inspectors, Wong said.
He would do an inspection and find what he said were violations, like not having correct labor posters up or that the ones that were posted were out of date. Sena said the posters are required only if the business employs nine or more people — but none of the businesses Bolanos targeted did.
After collecting checks from his victims, Bolanos later cashed them at a Hayward check cashing business, police said.
Police said Bolanos' arrest was partially a result of his arrogance.
Arrest at motel
He was arrested at a motel on International Boulevard in Oakland, where two days earlier he tried without success to shake down the owner for $300, police said. He rented a room for $65, not knowing the owner had already heard about the scam from other area businesses and was contacting a police officer parked across the street on another call, Wong said.
"It makes me angry what he was doing," said the owner, who did not want his or the motel's name used. "That's why I did what I could to get him caught. I was very shocked to see him come back here. He had a smirk like we weren't going to do anything about it."
Wong said Bolanos told police after his arrest he got his gift of gab from his days selling magazine subscriptions and labor posters to people. The only prior criminal conviction for him police could confirm is a Hayward shoplifting.
