Ex-Hospital CEO Sentenced to 18 Months in Kickback Case

The former chief executive officer of New York’s Hospital for Special Surgery, John R. Reynolds, was sentenced to 18 months in prison for taking almost $300,000 in kickbacks from a subordinate and lying about it, federal prosecutors said.

U.S. District Judge Harold Baer Jr. sentenced Reynolds today in a hearing in Manhattan federal court, the office of U.S. Attorney Preet Bharara said in a statement.

In July, Reynolds pleaded guilty to wire fraud and making false statements, admitting that he took payments from a hospital employee and lied to investigators about it.

Reynolds was arrested in September 2012 and charged with taking part in a decade-long kickback scheme. Prosecutors claimed that from 1996 to 2007, he took money from the hospital employee and from at least two hospital vendors and an unidentified health-care organization in the U.K. Reynolds left the hospital in 2008, according to the government.

The Hospital for Special Surgery was founded in 1863 as the Hospital for the Relief of the Ruptured and Crippled, according to its website.

The institution, which specializes in orthopedics, is known for treating sports stars including New York Mets third baseman David Wright and New York Yankees pitcher Mariano Rivera. Players for the New York Giants, Knicks, Red Bulls and Liberty are also treated there, according to the website.

The case is U.S. v. Reynolds, 12-cr-00708, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Christie Smythe in Brooklyn at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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