Queens Pharmacist Arrested at LaGuardia in $31M Medicaid HIV Drug Fraud

Miguel Baron, 62, ran a multi-year HIV drug buyback scheme from two Jackson Heights pharmacies, defrauding Medicaid of $31 million.

Queens Pharmacy Owner Nabbed at Airport in $31M Medicaid HIV Drug Scheme

Miguel Baron, 62, was arrested at LaGuardia Airport Thursday while attempting to board a one-way flight out of the country — carrying multiple passports and a wad of cash — as prosecutors charged him with orchestrating a $31 million Medicaid fraud scheme spanning more than three years, according to NY Post Metro.

Baron operated two Jackson Heights storefronts, Guardiola Pharmacy and Baron Specialty Pharmacy, through which he and co-conspirators ran the scheme from January 2023 to April 2026, the New York Attorney General's Office alleged.

How the Scheme Worked

The operation centered on HIV medications that taxpayer-funded programs reimburse at high rates. Medicaid and the AIDS Drug Assistance Program paid pharmacies between $4,000 and $4,500 for 30-day bottles of antivirals including Biktarvy, Discovy, Prezcobix and Truvada. Individual pills of Biktarvy alone can cost pharmacies up to $150 each, according to court documents.

Drivers or store staff handed Medicaid patients cash kickbacks of $150 to $200 in envelopes when they filled HIV prescriptions at Baron's shops. The pharmacies then bought back the patients' unopened medication for roughly $400 per bottle.

Workers used lighter fluid to strip the labels off the returned bottles before re-dispensing the recycled pills and billing Medicaid full price each time, authorities said.

Luxury Properties and a Partner Pharmacist

Baron and his partner pharmacist, Hamid Hosseinipour, used the proceeds to purchase luxury homes in Miami, pre-construction waterfront condominiums, and high-end real estate developments in Queens. World Cup tickets and luxury vehicles were also among the alleged expenditures.

"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," James added.

Raid, Flight Attempt and Asset Transfers

Law enforcement raided Baron's pharmacies on March 12. In the immediate aftermath, Baron began rapidly draining his business accounts. Court documents show he wrote a $20,000 check from a pharmacy account to one of his delivery drivers, with the memo line reading "severance pay + previous balance."

He also transferred more than $261,000 from his accountant, Alexander Martinez, described as a "final bonus payment," and wrote multiple checks from the pharmacy account to prepay Martinez for tax filing services through 2031.

Baron was charged with grand larceny, health care fraud, money laundering, and prohibited practices by a medical assistance provider. Alongside the criminal charges, the attorney general's office filed a civil asset forfeiture action to seize and place liens on property and assets Baron allegedly purchased with fraud proceeds.

Source: NY Post Metro