NY Man Sentenced, Fined For Fraud Scheme To Resell Specialty Baby Formula During National Shortage

A New York man was sentenced to prison and ordered to pay nearly $2 million in restitution and forfeit profits for a scheme to fraudulently obtain specialty prescription baby formula in order to resell it.

Vladislav Kotlyar, 45, of Staten Island , was sentenced Friday to two years and nine months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million, according to the U.S. Department of Justice .

Kotlyar obtained prescriptions and medical records for infants who were prescribed expensive specialty baby formula to be paid for by insurers. He then altered those records and prescriptions to obtain higher volumes of the formula.

After receiving the formula, Kotlyar fabricated issues with shipments, including by posing as the fathers of the infants and claiming the formula was damaged or incorrect in order to obtain additional formula at no charge. He then resold the fraudulently obtained formula.

According to the Justice Department, a portion of his scheme took place while there was a national shortage of infant formula.

Kotlyar pleaded guilty to mail fraud in March 2023.