Linda Rakonczay, Wire Fraud and Filing False Tax Returns, New York 2023

BUFFALO, N.Y. – In a shocking case of deceit and betrayal, a former payroll coordinator has been sentenced to 24 months in prison for her role in a massive wire fraud scheme.

Linda Rakonczay, 58, of Middleport, N.Y., was convicted of wire fraud and filing false tax returns, and was ordered to pay $93,999 in restitution to the Internal Revenue Service and $499,563 in restitution to Orleans Community Health.

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.

Rakonczay’s scheme was uncovered after a lengthy investigation, which revealed the shocking extent of her deceit. The defendant’s actions have left a trail of financial devastation in her wake, with Orleans Community Health suffering a significant loss of nearly half a million dollars.

The case serves as a stark reminder of the importance of transparency and accountability in our financial systems. It is a reminder that those who seek to exploit the system for personal gain will be held accountable.

In a statement, Assistant U.S. Attorney Trini E. Ross said, “This case highlights the importance of vigilance and oversight in preventing financial crimes.”

Related Federal Cases