Arizona woman pleads guilty to $7.7M pandemic tax credit fraud scheme

An Arizona woman pleaded guilty to attempting to steal more than $7.7 million in government funds by filing fraudulent tax returns, the Justice Department announced.

Regina Durkin, of New River, Arizona, conspired with others to defraud the United States by submitting false quarterly employment tax returns to the IRS, according to court documents. The scheme centered on fraudulent claims for two pandemic-era tax credits — the employee retention credit and the paid sick and family leave credit — programs Congress created to aid struggling businesses during the COVID-19 pandemic.

The companies listed on the filings were not in operation at the time, had no employees and paid no wages, prosecutors said. In total, Durkin and her co-conspirators submitted 14 fraudulent claims seeking more than $7.7 million in tax refunds.

Durkin pleaded guilty to one count of conspiracy to file false claims. She is scheduled to be sentenced Sept. 11 and faces a maximum of 10 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“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,” Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said. McDonald said the Fraud Division is working across all fronts to detect, investigate and prosecute criminal tax violations and will protect the integrity of the tax system by ensuring those who seek to enrich themselves at the expense of honest citizens face federal prosecution.

U.S. Attorney Timothy Courchaine said his office will continue finding and prosecuting individuals who exploited benefits intended to help the public during a crisis for personal gain. “We are grateful to our partners at IRS-CI for their tireless efforts to seek accountability on behalf of federal taxpayers,” he said.

IRS Criminal Investigation’s Phoenix Field Office is investigating the case. Acting Special Agent in Charge Scott Brown said Durkin attempted to steal $7.7 million from the American public through deliberate fraud and warned that 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,” Brown said.

The case is being prosecuted by Trial Attorneys Robert Kemins and Matthew Hoffman of the Criminal Division and Assistant U.S. Attorney Matthew Williams for the District of Arizona.

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The National Fraud Enforcement Division was created April 7, 2026, to investigate and prosecute fraud against the American people. The division’s work supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance that targets fraud, waste and abuse within federal benefit programs.

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