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Ex-Head of NY Hospital for Special Surgery Charged

 NEW YORK September 26, 2012 (AP)

Authorities say the former chief executive officer of New York’s Hospital for Special Surgery has been arrested in Massachusetts in a $1.4 million extortion scheme.

John Reynolds was arrested Wednesday at his Cataumet, Mass., home and held for an appearance in federal court in Boston.

He was charged in federal court in Manhattan with racketeering and making false statements. The crimes are punishable by up to 25 years in prison.

Reynolds served as chief financial officer at the hospital from 1986 to 1997. He was its chief executive officer from 1997 to 2006.

Federal prosecutors say Reynolds engaged in a decade-long kickback scheme that solicited money from vendors, a hospital employee and a United Kingdom-based health care organization.

His lawyer did not immediately respond to a message seeking comment.

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