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 March 18, 2023

Man pleads guilty to baby formula scam that netted $1.9 million

A New York man pleaded guilty this week to a number of fraud-related charges over a baby formula scam that brought in piles of cash. 

According to Breitbart, prosecutors indicated that Staten Island resident Vladislav Kotlyar, 43, was behind a scheme in which he fraudulently obtained specialty -- and expensive -- baby formula and resold it for massive profits, $1.9 million to be exact.

The scheme involved Kotlar forging prescriptions and medical records to have insurance pay for the expensive and rare formula.

Breitbart added:

Court documents allege that Kotlyar obtained prescriptions and medical records for infants who were prescribed specialty baby formula and forged those records to obtain additional baby formula of the same type.


A Justice Department statement on the case explained further details of Kotlar's operation in detail.

"After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by falsely claiming they were damaged or the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula," the statement read.

It added: "As part of the scheme, Kotlyar and his co-conspirators submitted more than $1.9 million in fraudulent claims to health insurers, including during a national shortage of baby formula. Kotlyar agreed to forfeit approximately $1 million and repay more than $738,000 in restitution."

"Kotlyar pleaded guilty to mail fraud and faces a maximum penalty of 20 years in prison. A sentencing date has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors."

Making matters even worse, and displaying just how much of a lowlife he is, the fraudster carried out the scam during a national baby formula shortage, when thousands of parents across the country were unable to obtain specialty formulas for their newborns.

That fact alone will, or should, sway the sentencing judge to throw the book at him.

Many Twitter users agreed, with one writing, "This makes me so angry. Parents were struggling to find the baby formula, and these slugs were causing the shortage. They should go to prison for the maximum term."

The DOJ listed Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section as the prosecutor on the case.

Written By:
Ryan Ledendecker

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