Police believe more victims have yet to be identified.
Dugar was initially arrested last week after several alleged victims accused of sexually abusing them. He quickly made bail. But more victims have since come forward.
Now, prosecutors say they have identified seven boys between the ages of 15 and 17 who say they were sexually abused by Dugar. He is now being held at County Jail in Martinez in lieu of $1.7 million bail.
This afternoon, police were staking him out when he left his Rchmond home, which is listed on the Megan's Law website for sex offenders.
He was arrested without incident at 36th Street and Macdonald Avenue, said Richmond police Sgt. Matt Stonebraker.
Police say Dugar, a registered sex offender, convinced the parents of troubled teens that he could be trusted.
Authorities say he ran an unlicensed group home at his residence, despite stints in jail and prison for sex crimes against children, failing to register as a sex offender and parole violations.
There is no record of funding, licensing or permitting that would allow Dugar to work with at-risk youth, according to police.
"At this point, we know that he's been operating under word of mouth, and that's all," Stonebraker said. "We don't know of any other way that he's been able to get the word out."
Asked if that meant regulating someone like Dugar would be difficult, Stonebraker said, "That's correct
Several of the alleged victims are students at Kennedy High School. Others, police say, are boys he knows from the community.
Police say Dugar identified himself as the legal guardian of some of the alleged victims who went to Kennedy. Dugar was on campus for athletic games, practices and study hall but was not required to be fingerprinted because he's not affiliated with the district in any official way.
"He was not an employee, he was not a volunteer," said Marcus Walton, West Contra Costa Unified School District spokesman. "He was a guardian, and there is no requirement for guardians or parents to be fingerprinted in order to come onto campus to watch their child at a practice or game or to talk to their child's teachers and check on grades and that sort of thing."
Perhaps one of the reasons that he escaped scrutiny is because Dugar has also received positive attention for running a transitional home for recently released inmates.