The owners of a Monterey County nursery, who also face jail time for tax evasion, agreed to pay $800,000 in penalties and restitution after 270 farmworkers were found living in illegal and unsafe makeshift units there in 2023.
An investigation into Ruvalcaba Nursery in Watsonville began in 2023 after a probation officer noticed someone under their supervision appeared to be living in a greenhouse on the nursery property, as Bay City News reports. An inspection of the site uncovered dozens of makeshift units carved out of converted greenhouses and other structures on the 23-acre nursery property, with 270 people living there.
According to Monterey County Now, the District Attorney's Office later alleged that the housing violated numerous health and safety requirements, including lack of ventilation, windows, heating, electrical systems, and fire safety. A lawsuit filed by four of the tenants also alleged that the units were infested with mold, roaches, and rodents, and the roofs and walls leaked, as KSBW reported at the time. Raw sewage was also reportedly discharged directly outside the units.
Some families had been living on the property for years, and despite the conditions, they were reportedly paying as much as $2,500 per month in rent. The renters alleged the units had no heating, smoke detectors, emergency exits, or potable water, which was sometimes discolored and green.
The renters also alleged the Ruvalcabas went to considerable lengths to keep the housing arrangement hidden. Families were reportedly discouraged from having visitors, while the owners monitored activity around the property and told residents and children to stay inside. Some residents said they were threatened with eviction or deportation if they were seen outside, per KSBW.
According to the lawsuit, renters were also confined to the property or locked inside when government officials came to inspect it, and they were instructed not to use the nursery's address on official documents, including medical forms.
The District Attorney's Office became involved in March 2024, filing criminal and civil charges that included felony tax evasion, along with misdemeanors related to the unpermitted housing and failure to carry workers' compensation insurance. According to Bay City News, the case also revealed that families had paid the Ruvalcabas about $1 million in cash rent between 2020 and 2022, income the couple allegedly failed to report, resulting in about $135,000 in unpaid taxes.
Nearly 30 tenants separately sued the couple over the housing conditions. The civil case, brought with assistance from California Rural Legal Assistance, alleged physical and emotional distress, property damage, and other harms resulting from the living conditions.
The criminal case was reportedly delayed after Nicolas Ruvalcaba's attorneys questioned whether he was competent to stand trial because of an Alzheimer's diagnosis, as Monterey County Now reports. On July 30, his attorney, William Pernik, withdrew a request for mental health diversion after Monterey County Superior Court Judge Mark Hood warned about further delays.
The Ruvalcabas had previously pleaded not guilty to the charges, with Nicolas writing in court documents, “We have not done any act which causes harm.” A trial was scheduled to begin August 3, but instead, the couple reached a settlement.
Under the agreement, Nicolas Ruvalcaba pleaded no contest to two felony tax-evasion charges and misdemeanors involving housing code violations and lack of workers' compensation insurance. Ana Ruvalcaba pleaded no contest to misdemeanor tax evasion and the same housing and insurance violations.
The couple agreed to pay $800,000, including $450,000 to 10 couples involved in the civil lawsuit, along with more than $300,000 in penalties to the California Franchise Tax Board, Monterey County agencies, and the court. They had also separately paid about $170,000 for temporary housing for people affected by the case and $200,000 to resolve the California Rural Legal Assistance civil complaint, per Bay City News.
The settlement also bars the Ruvalcabas from constructing structures without permits or allowing people to live in buildings that have not been approved by Monterey County.
Sentencing is scheduled for September 29. The District Attorney's Office is recommending four years of probation and 240 days of home confinement for Nicolas Ruvalcaba, and 40 days of home confinement for Ana Ruvalcaba, with the couple also facing up to a year in jail.
Image: Google Street View
