Middleport Woman Sentenced for Wire Fraud and Filing False Tax Returns
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Linda Rakonczay, 58, of Middleport, N.Y., who was convicted of wire fraud and filing false tax returns, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $93,999 in restitution to the Internal Revenue Service and $499,563 in restitution to Orleans Community Health.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant worked as a payroll coordinator for Orleans Community Health in Medina, N.Y. Beginning in 2001 and continuing through 2012, Rakonczay prepared and submitted reports to the organization’s bank instructing the bank to electronically transfer money from the corporate bank account to her personal bank account. The amount transferred from the organization’s bank account to the defendant’s account totaled $499,563. For tax years 2007 through 2012, Rakonczay failed to report such income and failed to pay federal taxes to the Internal Revenue Service totaling nearly $94,000.
The sentencing is the result of an investigation on the part of Special Agents of Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.