A Marin County Superior Court judge recently denied a request to reduce the workers' compensation fraud-related felonies to misdemeanors for Carmen Hall Soruco, a Novato resident. The judgement echoed the stance of the Marin County District Attorney's Office prosecutors. Official statements explain that Soruco, 72, was charged in 2020 with insurance fraud and filing false tax returns for failing to properly insure her construction company's employees between 2013 and 2016.
The drawn-out court proceedings shed light on the difficulties tackling workers' compensation fraud. Soruco, having pleaded guilty and sentenced in February 2022, was told to pay over $900,000 in restitution to the California State Compensation Insurance Fund (SCIF) and the California Employment Development Department (EDD). Antonio Soruco, her husband, assisted with a joint liability to aid in restitution. However, as of September 5 this year, only $7,100 has been paid. This has led to questions regarding compliance and commitment to compensatory payments. Marin County District Attorney's Deputy, Wesley Pratt, emphasized the need for vigilance in prosecuting such cases.
According to Pratt's statements, fair contractors in Marin secure appropriate insurance for their workers, which involves business expenses. Those who disregard this responsibility can render unfair competition by underselling law-abiding companies. Therefore, it is critical to prosecute those who bypass this obligation. The case of the Sorucos exhibits the societal and economic implications of workers' compensation fraud, primarily undermining legitimate businesses and rendering employees unprotected.
Workers' compensation fraud potentially leads to five years in prison and fines of up to $50,000. To combat this crime, the public needs to understand the issue and when suspecting fraud, report to the relevant authorities, such as the Marin County District Attorney's Office or the California Department of Insurance Fraud hotline at 1-800-927-4357.
