A 45-year-old Staten Island resident, Vladislav Kotlyar, has been sentenced to two years and nine months in prison on May 17, 2024 for his role in a fraudulent scheme to obtain specialty baby formula.
Additionally, he has been ordered to pay approximately $738,000 in restitution and forfeit around $1 million.
Court documents reveal that Kotlyar submitted forged prescriptions and medical records to obtain specialty baby formula, which was covered by health insurers.
He falsified records regarding the type and amount of formula prescribed, obtaining large quantities of expensive specialty baby formula.
Kotlyar then fabricated issues with the shipments, such as claiming damages or incorrect formula, to acquire additional formula at no cost.
He subsequently sold the fraudulently obtained formula, exploiting a national shortage of infant formula.
Kotlyar had previously pleaded guilty to mail fraud in March 2023.
The case was investigated by the FBI New York Field Office, and Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program.
Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged over 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion.
