The Journal Register (Medina, NY)

Local News

March 6, 2013

Hospital worker denies charges

Medina Journal-Register — ALBION — In legal fillings made in State Supreme Court, Linda Rakonczay denied allegation that she misappropriated more than $400,000 in payroll funds while employed by Medina Memorial Hospital.

Orleans Community Health filed suit against Rakonczay, the hospital’s former payroll coordinator, last month over allegations that she engaged in a scheme to unjustly enrich herself through the hospital’s payroll deductions account program. It is seeking to have a full recovery of the funds it claims to have lost.

An opposing affirmation filed by attorney Jon Louis Wilson, representing Rakonczay, requests that acting State Supreme Court Judge James Punch deny Orleans Community Health’s request. The affirmation says Rakonczay’s termination by the hospital in January prevents any additional harm to OCH.

“Given the fact that no trial, hearing, or summary disposition has been had in this matter ... (Rakonczay) respectfully submits to this Court that it is inappropriate to grant the extraordinary relief which (the hospital) seeks as a provisional remedy, given that the Plaintiff admits that it really has no idea of the nature and extent of its claimed damages,” the opposing affirmation reads.

The affirmation also asserts that Rakonczay has “already tendered virtually all of the proceeds in her only bank account” to agents of the Federal Bureau of Investigation. A federal investigation has not been publicly confirmed by the FBI or the U.S. Attorney’s Office in Buffalo.

In a reply memorandum filed by Hodgson Russ, the hospital says its efforts to recover lost funds would be harmed by the court denying their request to prohibit Rakonczay from transferring or disbursing her assets.

“After stealing close to a half million dollars (and possibly more) ... Rakonczay opposes the Hospital’s attempt to ensure that it can recover its misappropriated funds,” the memorandum reads. “Rakonczay should not, however, be allowed to hide or disburse her assets to frustrate the Hospital’s recovery.”

No court date has been set for the matter.

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