Corporate Scandals

Ex-Hospital CEO Charged with Taking $1.4 Million in Kickbacks

Accused of racketeering and making false statements to the government

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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 many as 25 years in prison if convicted.