• Who: Regina Durkin
  • What: Pleaded guilty to conspiracy to file false claims in a $7.7 million tax refund fraud scheme
  • Where: New River, Arizona
  • When: Guilty plea entered May 22, 2024; Sentencing scheduled for September 11
  • Status: Awaiting sentencing

An Arizona woman, Regina Durkin, has pleaded guilty to conspiracy to file false claims, attempting to steal over $7.7 million in government funds through fraudulent tax returns submitted to the Internal Revenue Service (IRS).

Durkin, identified as a resident of New River, Arizona, allegedly conspired with others to submit false quarterly employment tax returns in an effort to defraud the United States government.

What Happened

According to court documents, Durkin and her co-conspirators devised a scheme to file tax returns seeking fraudulent refunds. These refunds were based on the employee retention credit and paid sick and family leave credit, programs Congress established to assist struggling businesses during the COVID-19 pandemic. However, authorities allege that the companies involved in Durkin's scheme were not operational, lacked employees, and paid no wages, rendering them ineligible for these credits.

The alleged scheme involved fourteen fraudulent claims submitted to the IRS, collectively seeking more than $7.7 million in tax refunds. Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division emphasized the department’s commitment to prosecuting criminal tax violations and protecting the integrity of the tax system.

U.S. Attorney Timothy Courchaine added that the ongoing investigation seeks accountability for those who exploited public aid programs for personal financial gain. IRS Criminal Investigation (IRS-CI) is investigating the case, with IRS-CI Phoenix Field Office Acting Special Agent in Charge Scott Brown stating that agents specialize in dismantling complex financial schemes and will pursue those who abuse emergency relief programs.

The Charges Explained

Regina Durkin pleaded guilty to one count of conspiracy to file false claims. This charge typically involves an agreement between two or more individuals to commit a specific offense against the United States, in this case, submitting false claims to the government for financial gain. The offense requires proving an agreement, an overt act taken by at least one conspirator in furtherance of the agreement, and the intent to defraud the government by making false claims.

How These Cases Move Through Court

Federal criminal cases, such as the one against Ms. Durkin, typically begin with an investigation by federal law enforcement agencies like the IRS Criminal Investigation. If sufficient evidence is gathered, a prosecutor may seek an indictment from a grand jury, which formally charges an individual. After an arrest, the defendant appears before a magistrate judge for an initial appearance, where charges are read, and bail conditions are set. If the defendant pleads not guilty, the case proceeds to discovery, where both sides exchange information, and pre-trial motions. A defendant may choose to enter a plea agreement, pleading guilty in exchange for certain concessions from the prosecution, as Ms. Durkin did. If no plea agreement is reached, the case goes to trial. If convicted or if a guilty plea is accepted, a federal district court judge determines the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Context & Background

Schemes involving tax fraud, particularly those exploiting relief programs, represent a significant challenge for federal authorities. The alleged actions in this case, involving attempts to defraud COVID-19 relief programs, align with a broader pattern of white-collar crime that intensified during and after the pandemic. The Department of Justice recently established the National Fraud Enforcement Division in April 2026, aimed at specifically investigating and prosecuting fraud against the American public, underscoring the federal government's focus on combating such offenses. This division operates in conjunction with efforts like the President's Task Force to Eliminate Fraud.

Recognizing and Reporting Fraud/White Collar

Individuals who suspect they have been victims of or have information about white-collar crimes, including tax fraud or schemes involving government relief programs, are encouraged to report it to federal authorities. The Federal Bureau of Investigation (FBI) can be reached at 1-800-CALL-FBI (1-800-225-5324) or through their tips website. For concerns related to tax fraud specifically, the IRS also provides mechanisms for reporting suspected fraud.

What Happens Next

Regina Durkin is scheduled to be sentenced on September 11. A federal district court judge will determine her sentence after reviewing the U.S. Sentencing Guidelines and other relevant statutory factors. Durkin faces a maximum penalty of ten years in federal prison for the conspiracy to file false claims charge.