The former CEO of the Hospital for Special Surgery in New York was arrested Wednesday and charged by federal prosecutors with running a decade-long kickback scheme worth $1.4 million.
John Reynolds, 63, was arrested at his home in Cataumet, Mass., Wednesday morning. He was allegedly involved in three separate kickback schemes from 1996 through 2007 where he extorted or received payments from hospital vendors, a hospital employee and a U.K.-based healthcare organization, according to a statement by U.S. Attorney Preet Bharara.
An indictment unsealed Wednesday in Manhattan federal court charges Mr. Reynolds with racketeering and making false statements to the federal government during the investigation. If convicted, Mr. Reynolds faces up to 25 years in prison.
The Hospital for Special Surgery, located at 535 E. 70th St. on the Upper East Side, specializes in orthopedics and rheumatology. It is the oldest orthopedic hospital in the country.