An Arizona woman faces up to a decade in federal prison after admitting to a scheme that attempted to trick the IRS out of more than $7.7 million in pandemic-era government funds.
Regina Durkin, a resident of New River, Arizona, pleaded guilty on Thursday to one count of conspiracy to file false claims. According to official court documents, Durkin worked with unnamed co-conspirators to defraud the United States by filing false quarterly employment tax returns with the IRS.
The conspiracy targeted financial relief programs established by Congress to help struggling businesses survive the COVID-19 global pandemic. Specifically, Durkin and her group sought fraudulent refunds using the Employee Retention Credit, as well as the paid sick and family leave credit. However, investigators revealed that the companies listed on the paperwork did not actually operate, had zero employees, and paid no wages. In total, the group submitted 14 fraudulent claims requesting $7,736,421 in refunds.
Federal officials emphasized that abusing emergency funds undermines programs meant for citizens in need.
“No matter the scheme, the agency, or the program involved, those who cheat on their taxes for personal enrichment undermine the very foundation of public trust,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division is working across all fronts to detect, investigate, and prosecute criminal tax violations. We will protect the integrity of our tax system and ensure that those who seek to enrich themselves at the expense of honest citizens face the full weight of federal prosecution.”
U.S. Attorney Timothy Courchaine echoed those sentiments, noting that law enforcement remains focused on tracking down pandemic-related fraud.
“Our work continues as we find and prosecute individuals like Ms. Durkin who took a benefit meant to help the public during a crisis, and used it instead to line their own pockets,” Courchaine said. “We are grateful to our partners at IRS-CI for their tireless efforts to seek accountability on behalf of federal taxpayers.”
The case was investigated by the Phoenix Field Office of IRS Criminal Investigation (IRS-CI). Acting Special Agent in Charge Scott Brown issued a stern warning to others attempting similar financial schemes.
“Regina Durkin chose to steal $7.7 million from the American public through deliberate fraud—and now faces the full weight of a felony conviction,” Brown said. “Let this case be a clear warning: IRS‑CI will relentlessly pursue anyone who abuses emergency relief programs for personal gain. IRS-CI agents specialize in dismantling complex financial schemes. We will follow the money, expose the fraud, and ensure those who steal from taxpayers are held fully accountable.”
The formal announcement of the plea was made by Assistant Attorney General McDonald and U.S. Attorney Courchaine. The case is being prosecuted by Trial Attorneys Robert Kemins and Matthew Hoffman of the Justice Department’s Criminal Division, alongside Assistant U.S. Attorney Matthew Williams for the District of Arizona.
Durkin is officially scheduled for sentencing on September 11. While she faces a maximum statutory penalty of 10 years in prison, her final sentence will be determined by a federal district court judge, who will review the U.S. Sentencing Guidelines and other statutory factors before making a ruling.
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