Former Hospital for Special Surgery CEO Pleads Guilty to Wire Fraud

The former CEO of the Hospital for Special Surgery in New York City has pleaded guilty to wire fraud and making false statements, according to a Bloomberg Businessweek report.

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 Federal prosecutors have charged John Reynolds with allegedly taking $1.4 million in kickbacks from 1996 through 2007. Mr. Reynolds left the hospital in 2008. He was arrested in September 2012 for the charges.

Mr. Reynolds has admitted that he accepted payments from a hospital employeed and lied to investigators about it, according to the report.

Mr. Reynolds reached a plea agreement with the government in which he will forfeit $718,500. He is scheduled to be sentenced Nov. 7. Advisory federal sentencing guidelines will call for him to serve 27 to 33 months in prison, according to the report.

Mr. Reynolds served as the hospital’s CFO from 1986 to 1997, when he was named CEO. He was replaced as CEO and worked as a contract employee from October 2006 through December 2008.

More Articles on Healthcare Fraud:
Former Payroll Director at Grady Memorial Hospital Faces Embezzlement Charges
Former WellCare Executives Found Guilty of Healthcare Fraud
Former CEO of Miami Beach Community Health Center Sentenced for Embezzlement

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