Lockport Union-Sun & Journal — The second charge Rakonczay pled guilty to — tax fraud — could only include the years 2007 to 2012 because of the statute of limitations in such cases. Based on the income from the embezzled hospital funds during that time ($375,000) Rakonczay also now owes the Internal Revenue Service $93,999 in back taxes.
As Skretny went over the plea with Rakonczay, her attorney Jon Louis Wilson and Assistant U.S. Attorney Trini E. Ross, also discussed some factors that will go into her sentencing. There are guidelines to follow, he said, and based on her criminal history those guidelines recommend a jail term of 30 to 37 months, a fine of $6,000 to $60,000 and a one to three year period of supervised release. He added that they are guidelines, and when sentencing happens the years and fines in question could be either higher or lower. Skretny did note, however, that he will look at all facts of the case to come up with a sentence that is “fair, just and reasonable…but not unnecessary.”
Sentencing is scheduled for May 5 at 9 a.m.
As for the restitution Rakonczay has been ordered to pay — totaling $593,563 — it will begin with forfeiture of assets, which include several vehicles and some financial accounts. They will be taken by U.S. Marshalls and go to a federal auction. The money garnered from the sale of the vehicles will go toward paying back OCH and the IRS.
After the proceedings, Wilson said several proposals were exchanged with the U.S. Attorney’s Office once it brought the charges.
The plea agreement that was ultimately signed on Wednesday is the final draft that came from several different versions the two parties traded with each other. Every time a new agreement was discussed, he conferred with Rakonczay.
Wilson noted, “It’s an unfortunate predicament and we tried to get the best outcome for all parties.”