A Queens pharmacist allegedly orchestrated a $31 million Medicaid fraud operation involving the resale of HIV medications on the black market, using the proceeds to finance an extravagant lifestyle, prosecutors said Thursday.
Miguel Baron, 62, allegedly ran the yearslong scheme from two Jackson Heights businesses, Guardiola Pharmacy and Baron Specialty Pharmacy. According to the New York Attorney General’s Office, he spent the illicit profits on luxury real estate, expensive vehicles and World Cup tickets.
Investigators allege that between January 2023 and April 2026, Baron paid Medicaid recipients cash for bringing HIV prescriptions to his pharmacies. He allegedly bought additional prescriptions from other people for a fraction of their value, then submitted claims to Medicaid as though the drugs had been dispensed at full price.
Baron was arrested at LaGuardia Airport while allegedly attempting to leave the country. He faces charges including grand larceny, health care fraud, money laundering and violating rules governing medical assistance providers.
“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.
James also cautioned that pharmacy operators who participate in medication buyback schemes endanger patients and place New Yorkers’ health at “serious risk.”
Authorities say Baron and fellow pharmacist Hamid Hosseinipour used the alleged $31 million haul to acquire upscale homes in Miami, pre-construction waterfront condos and luxury developments in Queens.
According to prosecutors, patients arrived with HIV prescriptions and were given envelopes containing between $150 and $200 in cash by pharmacy employees or drivers.
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The pharmacies allegedly then purchased the unopened medications from those patients for roughly $400.
Workers are accused of using lighter fluid to remove identifying labels from the bottles. The medications were then allegedly dispensed multiple times while Medicaid was billed the full amount for each transaction.
Court documents state that certain HIV treatments, including Biktarvy, can cost pharmacies as much as $150 per pill, creating the potential for exceptionally large profits under the alleged scheme.
Medicaid and the AIDS Drug Assistance Program, both funded with taxpayer dollars, reimbursed the pharmacies between $4,000 and $4,500 for 30-day supplies of antiviral medications including Biktarvy, Discovy, Prezcobix and Truvada, authorities said.
Officials said Baron was taken into custody at LaGuardia as he prepared to board a one-way international flight. He allegedly had several passports and a large amount of cash with him.
Law enforcement searched Baron’s pharmacies on March 12. Soon afterward, he allegedly began moving money out of the companies’ accounts, including issuing a $20,000 check to a delivery driver. The check’s memo line reportedly described the payment as “severance pay + previous balance,” according to court papers.
Baron also allegedly transferred more than $261,000 to his accountant and alleged co-conspirator, Alexander Martinez, calling it a “final bonus payment.” Investigators further say he wrote several pharmacy checks to cover Martinez’s tax filings in advance for 2028, 2029, 2030 and 2031.
The attorney general’s office has also brought a civil asset forfeiture case seeking to seize or place liens on property and other assets allegedly purchased with money from the fraud scheme.
