A Queens pharmacist has allegedly orchestrated a $31 million scheme to defraud Medicaid, reportedly using the proceeds from selling black-market HIV medications to support a lavish lifestyle, according to prosecutors on Thursday.
Miguel Baron, 62, is said to have operated this extensive fraud from his two Jackson Heights pharmacies, Guardiola Pharmacy and Baron Specialty Pharmacy, using the ill-gotten gains to finance luxury homes, high-end cars, and even tickets to the World Cup, as stated by the New York Attorney General’s Office.
Between January 2023 and April 2026, Baron allegedly made cash kickbacks to Medicaid patients who obtained their HIV medications at his pharmacies. In exchange, he acquired black-market drugs and purchased prescriptions from others for a fraction of their worth, before submitting the full price to Medicaid for reimbursement, according to the AG’s allegations.
He was apprehended at LaGuardia Airport while attempting to leave the country and is facing charges that include grand larceny, health care fraud, money laundering, and various prohibited practices as a medical assistance provider.
“Exploiting vulnerable New Yorkers to embezzle tens of millions from Medicaid is unconscionable,” Attorney General Letitia James remarked.
James further pointed out that pharmacy owners engaging in these medication buyback schemes endanger the health of New Yorkers.
With his hefty earnings, Baron, along with his partner pharmacist Hamid Hosseinipour, reportedly acquired luxury properties in Miami and upscale condominiums along with high-end developments in Queens.
Patients would visit the pharmacies with their HIV prescriptions, receiving cash kickbacks of $150 to $200 in envelopes from store staff or drivers. The pharmacies then bought back their unopened medications for around $400.
According to officials, the staff would remove the labels from the bottles using lighter fluid, then re-dispense the recycled pills while fraudulently billing Medicaid for full price each time.
Some HIV medications, like Biktarvy, can cost pharmacies around $150 per pill, making the operation profitable. Taxpayer-funded programs such as Medicaid and the AIDS Drug Assistance Program reimburse pharmacies at high rates of $4,000 to $4,500 for a 30-day supply of antivirals like Biktarvy, Discovy, Prezcobix, and Truvada.
Authorities finally arrested Baron at LaGuardia Airport as he prepared to board a one-way flight out of the U.S., carrying multiple passports and a significant amount of cash.
Before his arrest, law enforcement executed a search warrant at Baron’s pharmacies on March 12, after which he began quickly withdrawing funds from his business accounts. This included writing a $20,000 check to a delivery driver, marked “severance pay + previous balance,” as noted in court documents.
He also transferred over $261,000 to his accountant, Alexander Martinez, labeled as a “final bonus payment,” and wrote several checks to prepay his accountant for tax filings for the years 2028 to 2031.
In addition to the criminal charges, the attorney general’s office has initiated a civil asset forfeiture action aimed at seizing and placing liens on properties and assets acquired with the funds from his alleged illegal activities.
