Ex-N.Y. Hospital CEO Charged With Taking Vendor Kickbacks (Bloomberg)
John R. Reynolds, former chief executive officer of New York’s Hospital for Special Surgery, was charged by federal prosecutors with taking $1.4 million in a decade-long illegal-kickback scheme.
Reynolds, 63, was arrested at his home in Massachusetts this morning, according to a statement from the office of U.S. Attorney Preet Bharara. An indictment unsealed today in Manhattan federal court charges Reynolds with racketeering and making false statements to the government. He faces as long as 25 years in prison if convicted.
Prosecutors claim that, from 1996 to 2007, Reynolds took money from at least two hospital vendors, a hospital employee and an unidentified health-care organization in the U.K. The orthopedic hospital is known for treating sports stars including New York Mets third basemanDavid Wright and New York Yankee relief pitcher Mariano Rivera. Reynolds left the hospital in 2008, according to the indictment.
“The government’s allegations are without basis in fact or law,” Reynolds’s lawyer, Michael Grudberg, said in an e-mailed statement today. “Mr. Reynolds served HSS faithfully and diligently for two de...
