NEW YORK (AP) — The former chief executive of the country's oldest orthopedic hospital pleaded guilty Thursday to criminal charges, admitting he accepted nearly $300,000 in kickbacks.
John Reynolds, 64, of Venice, Fla., entered the plea in Manhattan federal court to charges of wire fraud and making false statements. He was chief financial officer of New York's Hospital for Special Surgery from 1986 to 1997, when he was promoted to CEO, a position he held through 2008.
Reynolds said he hid the fact that he accepted $298,000 from a hospital employee after he helped her get outside consulting jobs because he knew he was not permitted to accept the money.
When investigators questioned him in 2008, he denied that he had worked with her, he said during his plea.
Reynolds has agreed with the government to serve between two and three years in prison, though his sentence will be determined on Nov. 7. Without his plea agreement, he would face up to 25 years in prison.
He also agreed to forfeit $718,000 and pay a fine.
"John Reynolds demonstrated a shocking disregard for his obligations as the leader of a world-renowned New York hospital when he exploited his position to line his own pockets and later lied about it to law enforcement," U.S. Attorney Preet Bharara said in a release.