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Milwaukee area grocers admit selling stolen baby formula

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MILWAUKEE, WI (WTAQ) - Federal court records show that a suburban Milwaukee grocery wholesaler admitted getting almost $6-million worth of stolen baby formula. Brothers Russ and Isaac Kaloti were charged this week. They agreed to plead guilty to a conspiracy charge, as well as hiding part of their revenues from a downtown Milwaukee hotel to avoid paying income taxes. Isaac Kaloti also agreed to plead guilty to receiving over $5,000 in stolen baby formula. The charges do not say much about the stolen formula, which federal agents seized in a raid in 2007 at Kaloti Wholesale of New Berlin. In Isaac’s plea agreement, he said the business received almost $10-million worth of baby formula – and he knew that about 60% of it was stolen. Authorities say baby formula is popular among retail thieves, because it has a very high re-sale value. Isaac Kaloti said the formula was received from two people running a business called the PS Food Market in Milwaukee. Prosecutors agreed to ask a judge for 30-months in prison for each defendant, and to stagger the sentences so one of the owners can always run the grocery wholesaling operation. Court dates for the two men have not been set yet.