New York man pleads guilty in $1.9M baby formula fraud scheme

March 16 (UPI) -- A New York City man pleaded guilty Thursday to committing $1.9 million worth of fraud related to baby formula.

Vladislav Kotlyar pleaded guilty to mail fraud and faces a maximum sentence of 20 years in federal prison. Prosecutors contend the 43-year-old man defrauded insurance plans and medical supply companies by deceitfully obtaining baby formula.

Kotlyar, who is from Staten Island, allegedly forged prescriptions to obtain the specialty baby formula. He then fabricated issues with the shipments, reporting some as damaged or otherwise unusable in order to obtain further formula, officials said.

Investigators believe he did not act alone, but Thursday's guilty plea did not include naming further co-conspirators.

Officials say Kotlyar submitted more than $1.9 million in fraudulent claims to health insurers.

At least some of those claims occurred while the United States was mired in a major shortage of baby formula because of supply chain issues. About 40% of top-selling baby formula products were out of stock at one point last April.

A date for sentencing has not yet been set.

As part of the guilty plea, Kotlyar will forfeit approximately $1 million and repay more than $738,000 in restitution.