Queens Pharmacy Owner Arrested Trying to Board One-Way Toronto Flight in Alleged $31 Million HIV Medicaid Fraud

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TIZIANA FABI | AFP via Getty Images Share on Twitter Share on Facebook Share on Pocket A Queens pharmacy owner who was arrested at LaGuardia Airport as he tried to board a one-way flight to Toronto now faces charges that he stole more than $31 million from Medicaid and New York’s AIDS Drug Assistance Program. New York Attorney General Letitia James announced the arrest and indictment on Oct. 7. A state court filing says the arrest took place in June.

Prosecutors say Miguel Baron, 62, of Yonkers, used two pharmacies in Jackson Heights, Guardiola Pharmacy and Baron Specialty Pharmacy, to pay cash to people with HIV who were on Medicaid. The charges are accusations only. Baron is presumed innocent unless proven guilty in court.

The alleged harm goes beyond taxpayer losses. HIV treatment works best when taken consistently, but according to the attorney general’s office, some patients were pushed to sell their HIV medicines back to the pharmacies instead of taking them. Others allegedly received drugs bought from unlicensed sources, with no guarantee the pills had been stored safely.

From Jan. 1, 2023, to April 29, 2026, Baron and others allegedly paid Medicaid recipients cash kickbacks, often $150 to $250, to fill their HIV prescriptions at his stores. In some cases, the pharmacies allegedly bought back patients’ medications for a few hundred dollars while collecting thousands from Medicaid and the AIDS Drug Assistance Program.

Prosecutors say repurchased medicines were put back on the shelves and sold to other customers. That allegedly let the pharmacies bill public programs more than once for a single prescription. In other cases, the pharmacies allegedly dispensed drugs from unlicensed sources while billing for legitimate HIV medications.

A civil forfeiture complaint filed in Queens County says the two pharmacies billed government payers for 481,839 HIV pills but bought only 312,939 from legitimate sources. Medicaid paid $31,801,927.97 for HIV prescriptions that were allegedly filled with diverted medicine or never dispensed, according to the filing. In 2025, more than 82.9% of what Medicaid paid Guardiola Pharmacy was tied to HIV drugs, the state says.

“Pharmacy owners who exploit patients with medication buyback schemes are putting New Yorkers’ health at serious risk,” James said.

A Queens County grand jury returned a 24-count indictment against Baron and his companies. The charges include two counts of first-degree grand larceny, 14 counts of first-degree health care fraud and two counts of second-degree health care fraud. They also face two counts of paying illegal kickbacks to Medicaid recipients under state social services law and four money laundering counts accusing them of hiding the source of the money.

Prosecutors say the money moved through shell companies into real estate, construction projects and large sums of cash. Alleged purchases include Miami-area condominiums, a Mercedes-Benz, a Lexus and tickets to 2026 FIFA World Cup matches in Miami.

The attorney general also filed a civil asset forfeiture action seeking more than $95 million in damages. That case allows the state to seize property and place liens on assets allegedly bought with stolen funds. If convicted on the top count, Baron faces a maximum sentence of eight and one-third to 25 years in prison.

The state’s acting Medicaid inspector general, Frank Walsh, said people who exploit the program will be held fully accountable. The investigation also involved the state Office of the Medicaid Inspector General, the U.S. Department of Health and Human Services Office of Inspector General and Homeland Security Investigations. The release did not list a next court date.

This is not the first time New York prosecutors have described a scheme like this one. In 2023, the attorney general charged the owner and manager of a Queens pharmacy with paying kickbacks to patients and billing Medicaid for HIV drugs that were not legally obtained or never existed.

HIV drugs are expensive, which makes them a target. In the buyback scheme, the pharmacies collected thousands of dollars in reimbursement for medicines they had bought back for a few hundred, according to the attorney general’s office. Medicines bought back from patients or acquired from unlicensed sources may have been stored improperly, and patients who sell their supply may go without treatment they need.

The cost lands on taxpayers too. New York’s Medicaid Fraud Control Unit reported more than $98 million in recoveries and 50 arrests in federal fiscal year 2026. The unit’s $70.8 million in funding for that year is 75% federal. Recent cases include a Queens dentist and a Nassau County medical supply owner, both charged with stealing from Medicaid. The federal inspector general also tracks state and federal cases on its enforcement actions page.

Patients who filled HIV prescriptions at either Jackson Heights pharmacy should not stop their treatment. Contact your HIV clinician or clinic about moving refills to another pharmacy. Ask a pharmacist to check whether any medicine you have at home looks unfamiliar, arrives without sealed manufacturer packaging, or does not match your prescription.

Families and caregivers should treat cash offers for prescriptions as a warning sign. Paying patients to fill prescriptions at a particular pharmacy, or offering to buy back medicines, can be illegal, and accepting such an offer can put a patient’s health at risk.

Anyone with information about Medicaid provider fraud can file a confidential complaint with the attorney general’s Medicaid Fraud Control Unit online or call its hotline at (800) 771-7755. In an emergency, call 911. Concerns involving Medicare or other federal programs can be reported to the HHS Office of Inspector General.

The criminal case and the civil forfeiture action will proceed separately in Queens. Many questions remain unanswered, including how many patients were affected and whether anyone was harmed by the medicines. MedicalDaily will follow court filings and report on any plea or trial dates.

Who was arrested in the Queens Medicaid fraud case? Miguel Baron, 62, of Yonkers, owner of Guardiola Pharmacy and Baron Specialty Pharmacy in Jackson Heights. He was arrested at LaGuardia Airport while trying to board a one-way flight to Toronto.

What is he accused of doing? Prosecutors allege he paid kickbacks to Medicaid patients with HIV, bought back their medicines, resold them and stole more than $31 million from public programs. He is presumed innocent unless proven guilty.

What charges does he face? The 24-count indictment includes first-degree grand larceny, health care fraud, illegal kickbacks and money laundering. The top count carries a maximum of eight and one-third to 25 years in prison.

Were patients put at risk? The attorney general says patients who sold their medicines may have missed treatment. Others received drugs from unlicensed sources with no assurance they were stored properly.

What should patients who used these pharmacies do? Keep taking prescribed HIV treatment and contact your clinician about moving refills. Ask a pharmacist to check any medicine that looks unfamiliar or comes without sealed packaging.

How can I report suspected Medicaid fraud in New York? File a confidential complaint with the attorney general’s Medicaid Fraud Control Unit or call (800) 771-7755.