New York Attorney General Letitia James has announced the arrest and indictment of a Queens pharmacy owner accused of stealing more than $31 million from Medicaid and the state’s AIDS Drug Assistance Program in a case related to Queens pharmacy Medicaid fraud.

Prosecutors say Miguel Baron, 62, of Yonkers, used two Jackson Heights pharmacies to run a years-long scheme involving cash kickbacks, prescription buybacks and allegedly false claims for costly HIV medications. The charges are accusations, and Baron is presumed innocent unless proven guilty.

The case, announced Oct. 7, centers on Guardiola Pharmacy and Baron Specialty Pharmacy. According to the Office of the New York Attorney General, investigators allege that the operation did more than drain public health programs. They say it also exposed patients living with HIV to potentially unsafe medications and, in some cases, encouraged people to sell back medicine they had been prescribed to take.

This case highlights the serious issues surrounding Medicaid fraud, specifically pertaining to the Queens pharmacy Medicaid fraud allegations against the pharmacy owner.

What prosecutors allege happened

The Attorney General’s Medicaid Fraud Control Unit says the alleged conduct ran from Jan. 1, 2023, through April 29, 2026. Investigators allege that Baron and co-conspirators offered some Medicaid recipients cash payments, often between $150 and $250, to fill prescriptions at the pharmacies.

In other instances, prosecutors say the pharmacies offered to buy back HIV medications from customers for a few hundred dollars. The state alleges those same prescriptions could bring the pharmacies thousands of dollars in reimbursement through Medicaid or the AIDS Drug Assistance Program, commonly known as ADAP.

Authorities allege some repurchased medications were returned to pharmacy inventory and later dispensed to other customers. That process, prosecutors say, allowed the pharmacies to bill public programs more than once for the same prescription. The Attorney General’s Office also alleges that medications obtained from unlicensed sources were dispensed while the pharmacies billed Medicaid and ADAP as though legitimate medications had been provided.

The state says the pharmacies received more than $31 million in reimbursements for HIV medications through allegedly false claims.

Why the allegations raise patient-safety concerns

The financial allegations are only one part of the case. The Attorney General’s Office says the alleged prescription buyback operation could have placed people living with HIV at serious risk. Patients who sold prescribed medications back to a pharmacy could miss doses or stop treatment, while medicines obtained outside licensed channels may not come with reliable assurances about storage, handling or authenticity.

That concern is especially significant with HIV treatment, where patients depend on consistent access to prescribed medications. The state alleges that some customers received medications purchased on the black market, rather than medication supplied through normal licensed channels.

James said pharmacy owners who exploit patients through medication buyback schemes can put New Yorkers’ health at risk. In announcing the case, she said her office would continue working to protect patients and public health funds.

“Taking advantage of vulnerable New Yorkers to steal tens of millions of dollars from Medicaid is despicable,” James said.

Arrest at LaGuardia Airport and criminal charges

Baron was arrested at LaGuardia Airport as he was attempting to board a one-way flight to Toronto, according to the Attorney General’s Office.

A Queens County grand jury indicted Baron and his companies on a series of felony charges. They include:

• Two counts of first-degree grand larceny;
• Fourteen counts of first-degree health care fraud;
• Two counts of second-degree health care fraud;
• Two counts involving allegedly unlawful kickbacks to Medicaid beneficiaries;
• Three counts of first-degree money laundering; and
• One count of second-degree money laundering.

The money-laundering charges are tied to allegations that funds from the pharmacies were moved through shell-company bank accounts to conceal their source and ownership. Prosecutors say those companies then bought real estate, funded construction projects and converted some of the money into large amounts of cash.

If convicted on the top count, Baron could face a maximum sentence of 8⅓ to 25 years in prison, according to the Attorney General’s Office. A maximum possible sentence is not a prediction of the outcome of the case.

State seeks assets in separate civil action

Alongside the criminal indictment, James’ office filed a civil asset-forfeiture action. The state says the action allows it to seek seizure of or liens against assets allegedly purchased with proceeds from the scheme.

 

According to the Attorney General, Baron and associates allegedly used proceeds to acquire luxury real estate in Miami, a Mercedes-Benz, a Lexus and tickets to the 2026 FIFA World Cup in Miami. The civil action seeks more than $95 million in damages.

The state specifically identified condominium interests in the Miami area, including units in developments marketed with high-end amenities. The architectural renderings accompanying the Attorney General’s announcement show Villa Miami and One Twenty Brickell, properties the state says were connected to purchases made with allegedly stolen funds.

A civil forfeiture action is separate from the criminal prosecution. The government still must establish its claims through the legal process, and the allegations should not be treated as findings of guilt.

What Medicaid fraud costs the public

Medicaid is funded with state and federal tax dollars and provides health coverage to millions of people, including many low-income New Yorkers. Fraud involving high-cost prescription drugs can divert money from legitimate patient care and increase pressure on programs intended to serve people who need treatment.

The Attorney General’s Medicaid Fraud Control Unit investigates provider fraud as well as abuse and neglect involving nursing-home residents. According to James’ office, the unit reported more than $98 million in recoveries from criminal prosecutions and civil settlements during federal fiscal year 2026, along with 50 arrests in complex fraud cases.

The unit itself is funded jointly by the federal government and New York State. For federal fiscal year 2026, its total funding is approximately $70.8 million. The Attorney General’s Office says 75% comes through a U.S. Department of Health and Human Services grant, with the remaining 25% funded by New York State.

A broader enforcement effort

The Attorney General’s Office has announced several other Medicaid fraud cases in 2026. Recent actions cited by the office include cases involving a Queens dentist, an alleged fraudulent Medicaid clinic, a Rochester nursing-home employee, a medical-supply company owner and an alleged network of fraudulent eye clinics.

Those cases are separate from the allegations against Baron. Their inclusion in the Attorney General’s announcement reflects a broader enforcement effort aimed at protecting public health programs from fraud, waste and abuse.

What New Yorkers should know

The case offers a reminder that patients should be cautious when anyone offers cash or other benefits in exchange for prescriptions, medications or use of Medicaid benefits. A legitimate prescription is intended for the patient for whom it was written. Selling prescribed medicine back into an unofficial supply chain can create serious health and legal risks.

New Yorkers who believe they have information about Medicaid provider fraud can report it to the Attorney General’s Medicaid Fraud Control Unit. The office also accepts reports involving abuse or neglect of nursing-home residents. Emergencies should be reported to 911.

The investigation involved the New York Attorney General’s Medicaid Fraud Control Unit with assistance from the New York State Office of the Medicaid Inspector General, the U.S. Department of Health and Human Services Office of Inspector General and Homeland Security Investigations.

For readers across Utica, Oneida County and the Mohawk Valley, the case is based in Queens, but the public dollars at issue come from statewide and federal health programs. The larger question is one that reaches every community: whether taxpayer-funded health systems can protect both their resources and the patients who depend on them. The criminal case will now move through the courts, where prosecutors will have to prove the charges and the defense will have the opportunity to challenge the state’s evidence.

Source: Office of the New York Attorney General, Oct. 7, 2026.