Miguel Baron, a 62-year-old pharmacist from Queens, has been charged with running a $31 million Medicaid fraud scheme involving black-market HIV drugs, according to the New York Attorney General’s Office. Baron allegedly operated the scheme through his two pharmacies, Guardiola Pharmacy and Baron Specialty Pharmacy, using the illegally obtained funds to support a lavish lifestyle, including luxury properties and cars.
From January 2023 to April 2026, Baron reportedly paid cash kickbacks to Medicaid patients who filled their HIV medication prescriptions at his pharmacies in exchange for black-market drugs. He also purchased other patients' prescriptions for a fraction of their value before billing Medicaid at full price, as stated by prosecutors.
Baron was arrested at LaGuardia Airport while attempting to leave the country. He faces charges of grand larceny, health care fraud, money laundering, and prohibited practices by a medical assistance provider. Attorney General Letitia James condemned the actions, stating that exploiting vulnerable individuals to defraud Medicaid is unacceptable.
Baron and his partner, pharmacist Hamid Hosseinipour, allegedly used the proceeds from the scheme to acquire luxury real estate, including properties in Miami and high-end developments in Queens. Patients were reportedly given cash kickbacks ranging from $150 to $200 for their HIV prescriptions, which were then bought back for approximately $400. The pharmacies allegedly reused the medications after removing labels and fraudulently billed Medicaid for full price.
Some HIV medications can cost pharmacies up to $150 per pill, leading to significant profits. Medicaid and the AIDS Drug Assistance Program reimbursed the pharmacies at rates between $4,000 to $4,500 for 30-day supplies of certain antivirals.
Baron was apprehended with multiple passports and cash while attempting to board a one-way flight. Following a raid on his pharmacies on March 12, he reportedly began withdrawing large sums from his business accounts, including a $20,000 check labeled as “severance pay + previous balance.” Additionally, he transferred over $261,000 to his accountant for a “final bonus payment” and made prepayments for future tax filings. The Attorney General’s Office has also initiated civil asset forfeiture actions to seize assets acquired through the alleged illegal activities.