Regina Durkin pleaded guilty to conspiracy to file false claims after submitting fraudulent quarterly employment tax returns to the IRS seeking more than $7.7 million. DOJ alleges the filings falsely claimed COVID-era employee retention and paid sick/family leave credits while the companies were not operating and had no employees.

A federal case described by the U.S. Department of Justice centers on alleged COVID-era tax credit fraud using false employment tax filings. According to DOJ, Regina Durkin pleaded guilty to conspiracy to file false claims after submitting fraudulent quarterly employment tax returns to the IRS. Prosecutors allege Durkin sought more than $7.7 million by relying on tax credits tied to employee retention and paid sick and family leave. DOJ says the underlying companies were not operating and had no employees, yet the claims were structured to make those credits appear legitimate. In other words, the alleged scheme combined fabricated business facts with IRS reporting to convert non-existent payroll activity into refund amounts. If true, the conduct undermines federal benefit integrity by weaponizing legitimate credit programs. It also highlights a common red-flag pattern in tax-related fraud: polished paperwork and benefit-eligible language that does not match the reality of a business’s operations, headcount, and timing. The DOJ filing frames the matter as a direct attack on taxpayer trust and the accuracy of federal tax administration.