{
  "url": "https://scopeofcover.com/stories/ca/general-contractor-workers-comp-premium-fraud-plea",
  "title": "California Contractor Guilty Plea in Workers' Comp Fraud Case",
  "template": "story",
  "published": "2026-10-06",
  "updated": "2026-10-06",
  "last_verified": "2026-10-06",
  "answer": "A California contractor pleaded guilty to workers' compensation fraud after underreporting payroll. The court ordered restitution and jail time. Scope of Cover found the restitution order was for over $925,000. The case also involved payroll tax evasion, which caused an additional loss of approximately $342,405 to the state's Employment Development Department. The contractor's actions resulted in significant financial and legal consequences, including jail sentences for the individuals involved.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-soruco-guilty-plea",
      "statement": "Carmen Hall Soruco and Antonio Soruco pleaded guilty to workers' compensation fraud charges.",
      "value": "workers’ compensation fraud charges",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Carmen Hall Soruco, 70, and her husband Antonio Soruco, 75, both of Novato, were sentenced last week after pleading guilty to workers’ compensation fraud charges.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-jail-time",
      "statement": "Carmen Hall Soruco was sentenced to 120 days in jail.",
      "value": "120 days",
      "unit": "jail",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Hall was sentenced on multiple felony counts to two years of probation with full search and seizure, 120 days in jail, and ordered to pay over $925,000 in restitution to State Compensation Insurance Fund (SCIF) and Employment Development Department (EDD).",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-restitution-amount",
      "statement": "Carmen Hall Soruco was ordered to pay over $925,000 in restitution.",
      "value": "925000",
      "unit": "USD",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Hall was sentenced on multiple felony counts to two years of probation with full search and seizure, 120 days in jail, and ordered to pay over $925,000 in restitution to State Compensation Insurance Fund (SCIF) and Employment Development Department (EDD).",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-antonio-soruco-sentence",
      "statement": "Antonio Soruco was sentenced to one year of probation with full search and seizure and 120 days in jail.",
      "value": "one year",
      "unit": "probation",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Soruco was sentenced to one year of probation with full search and seizure, 120 days in jail, and was also ordered to pay over $925,000 in restitution to SCIF and EDD after pleading guilty to multiple misdemeanor charges.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-antonio-soruco-jail-time",
      "statement": "Antonio Soruco was sentenced to 120 days in jail.",
      "value": "120 days",
      "unit": "jail",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Soruco was sentenced to one year of probation with full search and seizure, 120 days in jail, and was also ordered to pay over $925,000 in restitution to SCIF and EDD after pleading guilty to multiple misdemeanor charges.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-antonio-soruco-restitution-amount",
      "statement": "Antonio Soruco was ordered to pay over $925,000 in restitution.",
      "value": "925000",
      "unit": "USD",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Soruco was sentenced to one year of probation with full search and seizure, 120 days in jail, and was also ordered to pay over $925,000 in restitution to SCIF and EDD after pleading guilty to multiple misdemeanor charges.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-fraud-description",
      "statement": "Hall and Soruco committed Workers’ Compensation insurance premium fraud by failing to report employees and payroll to SCIF.",
      "value": "failing to report employees and payroll",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "The investigation revealed Hall and Soruco committed Workers’ Compensation insurance premium fraud by failing to report employees and payroll to SCIF from October 15, 2013 through December 8, 2016.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-fraud-period",
      "statement": "The workers' compensation insurance premium fraud occurred from October 15, 2013, through December 8, 2016.",
      "value": "October 15, 2013 through December 8, 2016",
      "unit": "date range",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "The investigation revealed Hall and Soruco committed Workers’ Compensation insurance premium fraud by failing to report employees and payroll to SCIF from October 15, 2013 through December 8, 2016.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-insurer-impacted",
      "statement": "The State Compensation Insurance Fund (SCIF) was impacted by the premium fraud.",
      "value": "State Compensation Insurance Fund (SCIF)",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "The investigation revealed Hall and Soruco committed Workers’ Compensation insurance premium fraud by failing to report employees and payroll to SCIF from October 15, 2013 through December 8, 2016.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-premium-loss",
      "statement": "Unreported payroll led to a premium loss of approximately $585,666 for SCIF.",
      "value": "585666",
      "unit": "USD",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "The investigation further revealed unreported payroll to SCIF, leading to a premium loss of approximately $585,666.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-payroll-tax-evasion",
      "statement": "Hall and Soruco committed payroll tax evasion by failing to report employees and payroll to California’s EDD.",
      "value": "failing to report employees and payroll",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Investigators also discovered Hall and Soruco committed payroll tax evasion by failing to report employees and payroll to California’s EDD from October 15, 2013 through February 6, 2019 which resulted in a payroll tax loss to EDD of approximately $342,405.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-payroll-tax-evasion-period",
      "statement": "Payroll tax evasion occurred from October 15, 2013, through February 6, 2019.",
      "value": "October 15, 2013 through February 6, 2019",
      "unit": "date range",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Investigators also discovered Hall and Soruco committed payroll tax evasion by failing to report employees and payroll to California’s EDD from October 15, 2013 through February 6, 2019 which resulted in a payroll tax loss to EDD of approximately $342,405.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-soruco-edd-loss",
      "statement": "The payroll tax evasion resulted in a loss to EDD of approximately $342,405.",
      "value": "342405",
      "unit": "USD",
      "as_of": "2022-02-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "quote": "Investigators also discovered Hall and Soruco committed payroll tax evasion by failing to report employees and payroll to California’s EDD from October 15, 2013 through February 6, 2019 which resulted in a payroll tax loss to EDD of approximately $342,405.",
      "retrieved": "2026-10-06"
    },
    {
      "claim_id": "ca-employers-workers-comp-requirement",
      "statement": "California law requires all employers, including those in the construction industry, to carry workers' compensation insurance, even with only one employee.",
      "value": "workers' compensation insurance",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "California law requires that employers, including those in the construction industry, carry workers' compensation insurance, even if they have only one employee.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-contractor-license-workers-comp-proof",
      "statement": "CSLB licensees must provide a valid Certificate of Workers' Compensation Insurance or a valid Certification of Self-Insurance.",
      "value": "Certificate of Workers' Compensation Insurance",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Provide CSLB with a valid Certificate of Workers' Compensation Insurance (Easy-Fill Online Form or Download Guide) or a valid Certification of Self-Insurance from the Department of Industrial Relations;",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-illegally-uninsured-criminal-offense",
      "statement": "Failing to have workers' compensation coverage is a criminal offense, punishable by a fine of not less than $10,000 or imprisonment for up to one year, or both.",
      "value": "10000",
      "unit": "USD",
      "as_of": "2023-03-01",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Failing to have workers' compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-illegally-uninsured-state-penalties",
      "statement": "The state issues penalties of up to $100,000 against illegally uninsured employers.",
      "value": "100000",
      "unit": "USD",
      "as_of": "2023-03-01",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-insurers",
      "statement": "Employers must purchase workers’ compensation insurance from either a licensed insurance company or through the State Compensation Insurance Fund (State Fund).",
      "value": "licensed insurance company or through the State Compensation Insurance Fund",
      "as_of": "2023-03-01",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Employers must purchase workers’ compensation insurance from either a licensed insurance company or through the State Compensation Insurance Fund (State Fund).",
      "retrieved": "2026-10-02"
    }
  ],
  "sources": [
    {
      "title": "California Department of Insurance: Press release 016-2022 (workers' compensation premium fraud, Soruco Structures)",
      "url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release016-2022.cfm",
      "publisher": "California Department of Insurance",
      "retrieved": "2026-10-06"
    },
    {
      "title": "CSLB: Workers' compensation insurance for licensees",
      "url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    },
    {
      "title": "California DIR: Workers' compensation FAQ",
      "url": "https://www.dir.ca.gov/dwc/faqs.html",
      "publisher": "California Division of Workers' Compensation",
      "retrieved": "2026-10-02"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}