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Press Release

Staten Island Man Pleads Guilty to Baby Formula Fraud Scheme

For Immediate Release
U.S. Attorney's Office, Eastern District of New York

BROOKLYN – Earlier today, in federal court in Brooklyn, Vladislav Kotlyar pleaded guilty to defrauding insurance plans and medical suppliers by fraudulently procuring specialty baby formula.  When sentenced for mail fraud, Kotlyar faces up to 20 years in prison.  The proceeding was held before United States District Judge William F. Kuntz, II.

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

According to court filings, Kotlyar submitted forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed specialty baby formula and forged those records to obtain additional specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including falsely claiming they were damaged or the incorrect formula in order to obtain additional formula at no additional cost. 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 pay more than $738,000 in restitution. 

Trial Attorney Patrick J. Campbell of the Justice Department’s Fraud Section is prosecuting the case.

The Defendant:

Age:  43
Staten Island, New York

E.D.N.Y. Docket Number: 23-CR-75 (WFK)


John Marzulli
Danielle Blustein Hass
United States Attorney's Office
(718) 254-6323

Updated March 16, 2023

Financial Fraud