A Queens pharmacy owner has been arrested and charged in connection with a $31 million scheme involving Medicaid kickbacks and the illicit resale of HIV medications. Miguel Baron, 62, allegedly operated the fraudulent enterprise from his two Jackson Heights pharmacies, Guardiola Pharmacy and Baron Specialty Pharmacy, using the proceeds to finance a lifestyle that included luxury properties and vehicles, according to the New York Attorney General’s Office.
Prosecutors state that from January 2023 to April 2026, Baron engaged in a pattern of illicit activity. He allegedly paid cash kickbacks to Medicaid patients who filled their HIV prescriptions at his pharmacies. In return, Baron acquired these medications on the black market. He also reportedly purchased prescriptions from patients for a fraction of their value before re-billing Medicaid at the full price.
Baron was apprehended at LaGuardia Airport as he attempted to leave the country, facing charges of grand larceny, health care fraud, money laundering, and prohibited practices by a medical assistance provider.
"Taking advantage of vulnerable New Yorkers to steal tens of millions of dollars from Medicaid is despicable," Attorney General Letitia James said in a statement. "Pharmacy owners who exploit patients with medication buyback schemes are putting New Yorkers’ health at serious risk."
According to the attorney general’s office, Baron, along with partner pharmacist Hamid Hosseinipour, used the approximately $31 million generated from the scheme to acquire substantial assets. These included luxury homes in Miami, pre-construction waterfront condominiums, and high-end real estate developments in Queens.
The scheme involved paying patients $150 to $200 in cash kickbacks for their unopened HIV medications. The pharmacies would then purchase these drugs for around $400. Authorities allege that employees used lighter fluid to remove labels from the medication bottles before repackaging and reselling them. This process allowed the pharmacies to repeatedly bill Medicaid the full price for the same medications.
Some HIV medications, such as Biktarvy, can cost pharmacies up to $150 per pill. Taxpayer-funded programs like Medicaid and the AIDS Drug Assistance Program reimbursed the pharmacies at high rates, ranging from $4,000 to $4,500 for 30-day supplies of antiviral drugs including Biktarvy, Descovy, Prezcobix, and Truvada.
Prior to his arrest, law enforcement executed a raid on Baron’s pharmacies on March 12. Following the raid, Baron reportedly began rapidly withdrawing funds from his business accounts. Court documents indicate he wrote a $20,000 check from a pharmacy account to a delivery driver, labeled "severance pay + previous balance." He also transferred over $261,000 from a co-conspirator, accountant Alexander Martinez, for a "final bonus payment," and made multiple pre-payments to Martinez for future tax filing services.
In addition to the criminal charges, the attorney general’s office has initiated a civil asset forfeiture action. This action seeks to seize and place liens on properties and assets that Baron allegedly purchased with the proceeds of his criminal activities.