Vladislav Kotlyar, Baby Formula Scheme, New York 2023

GRIMY TIMES EXCLUSIVE: A New York man has been sentenced to two years and nine months in prison for his role in a scheme to fraudulently obtain specialty baby formula. Vladislav Kotlyar, 45, of Staten Island, was ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his crimes.

According to court documents, Kotlyar submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. He obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records with respect to the type and amount of formula prescribed to obtain high volumes of expensive specialty baby formula.

Kotlyar then fabricated issues with the shipments, including by impersonating the infants’ fathers, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. He then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula.

Kotlyar previously pleaded guilty in March 2023 to mail fraud.

The FBI New York Field Office investigated the case, and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Claire S. Kedeshian for the Eastern District of New York assisted with forfeiture.

The scheme, which targeted health insurers, resulted in a total loss of $1.9 million. Kotlyar’s sentence and restitution order serve as a reminder of the seriousness of healthcare fraud and the importance of holding individuals accountable for their crimes.

With the current healthcare system under scrutiny, cases like Kotlyar’s highlight the need for increased vigilance and cooperation between law enforcement and healthcare providers to prevent and detect healthcare fraud.

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