PHOENIX - A New River woman faces up to 10 years in federal prison after admitting she tried to steal more than $7.7 million in pandemic relief funds using fake businesses.
What we know:
Regina Durkin pleaded guilty in federal court to conspiracy to file false claims. Authorities said Durkin used sham companies with no actual employees to file 14 fraudulent tax returns with the IRS, targeting emergency programs meant to keep real businesses afloat during the COVID-19 pandemic.
"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," said Scott Brown, Acting Special Agent in Charge of the IRS Criminal Investigation Phoenix Field Office.
IRS Headquarters Building WASHINGTON, DC- MARCH 24: A sign makes the location of the Internal Revenue Service headquarters building on March 24, 2026, in Washington, DC. (Photo by J. David Ake/Getty Images)
According to court documents, the scam specifically targeted the Employee Retention Credit and emergency paid sick leave. Federal prosecutors said the companies listed on Durkin's applications were entirely inactive and paid zero wages.
What they're saying:
"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," Arizona U.S. Attorney Timothy Courchaine said.
Dig deeper:
The case was investigated by the IRS Phoenix Field Office alongside the Justice Department's newly formed National Fraud Enforcement Division.
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What's next:
Durkin is scheduled for sentencing on Sept. 11.
The Source: Information in this story was gathered from the U.S. Department of Justice.