[1] Thirty-five officers from the San Mateo County Sheriff's Department raided the bar, arresting 77 gay men and 10 lesbians,[2] for "operating a dance without a permit" and serving alcohol to minors.

[5] In the 1950s, a socially conservative anti-gay moral panic known as the Lavender Scare resulted in widespread police raids of "homosexual gatherings" in San Francisco and throughout the Bay Area.

[5] As a result of the surveillance, Sheriff Earl Whitmore led a 35-person raid on Hazel's Inn, which included military police, officers from the California Highway Patrol, and Alcoholic Beverage Control agents.

"[1] The officers rounded up the Inn's approximately 300 patrons and picked out 90 individuals (seventy-seven men, ten women, and three minors) for arrest.

[1] Two men were ultimately found guilty by the jury; they were ordered to pay heavy fines and were banished from San Mateo County for two years.

"[3] The court decision affirmed the revoking of Nickola's license and ultimately empowered the State of California to broaden its definition of "illicit behavior.

"[3] According to the historian Nan Alamilla Boyd, the case remains significant in California's legal history because it "whittled down the homosexual right to assembly and bolstered the state's ability to permanently shut down gay bars and taverns.

While fighting for her license in court, Hazel Nickola's business suffered dramatically, and she was forced to sell her car, piano, and property to pay for her legal fees.