Cash for Prescriptions: Queens Pharmacy Owner Charged in Alleged $31 Million HIV Drug Buyback Scheme

Published Oct. 9, 2026. Case statuses are current as of that date.

A pharmacy offers you $150 or $200 in cash just for filling your prescription there. Or it offers to buy back the HIV medication you just picked up. New York prosecutors say that is exactly how a Queens pharmacy owner allegedly turned patients' prescriptions into more than $31 million in Medicaid and AIDS Drug Assistance Program (ADAP) payments, while putting patients' health at risk.

On Oct. 7, 2026, New York Attorney General Letitia James announced the arrest and indictment of Miguel Baron, 62, of Yonkers, the owner of two pharmacies in Jackson Heights, Queens [1]. He and four companies are charged with grand larceny, health care fraud, paying kickbacks to Medicaid beneficiaries, and money laundering [1][2].

Important: These are allegations. In the attorney general's words, "These charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law" [1]. Gothamist reported that Baron could not be reached for comment and did not have an attorney listed in court documents [3].

How the alleged scheme worked

According to the attorney general's Medicaid Fraud Control Unit (MFCU), from Jan. 1, 2023, to April 29, 2026 [1]:

1. Cash kickbacks. Baron and co-conspirators allegedly encouraged Medicaid recipients to fill their prescriptions at his pharmacies, Guardiola Pharmacy and Baron Specialty Pharmacy, by paying them cash kickbacks, often between $150 and $250.
2. Buybacks. In some cases, the pharmacies allegedly offered to buy back patients' medications for a few hundred dollars, while collecting thousands of dollars in reimbursement from Medicaid and ADAP.
3. Resale and rebilling. Baron allegedly put the repurchased medications back into inventory and dispensed them to other customers, billing Medicaid and ADAP multiple times for a single prescription.
4. Black-market supply. In other cases, he allegedly dispensed medications bought from unlicensed sources while billing for legitimate HIV medications.
5. Laundering. The attorney general alleges that money was moved from the pharmacies' bank accounts to shell companies, which bought real estate, funded construction projects and converted funds into large sums of cash.

Prosecutors say the alleged scheme put people living with HIV at serious risk: some patients were pressured to sell their medication instead of taking it as directed, and others received drugs "purchased on the black market with no assurances for their safety" [1].

The attorney general says the funds allegedly bought luxury properties in Miami, a Mercedes-Benz, a Lexus and tickets to the 2026 FIFA World Cup in Miami. Her office has also filed a civil asset forfeiture action seeking more than $95 million in damages [1].

Who is charged

The indictment, filed in New York State Supreme Court, Queens County (Indictment No. 1106/2026), names five defendants [2]:

• Miguel Baron, 62, of Yonkers. The attorney general says he was arrested at LaGuardia Airport as he attempted to board a one-way flight to Toronto [1]. Gothamist reported that the arrest happened in June and that the indictment was filed in September and unsealed Oct. 7 [3].
• Guardiola Pharmacy, Inc.
• Baron Pharmacy, Inc., doing business as Baron Specialty Pharmacy
• Prime Home Enterprise, LLC
• Bar&Ca, LLC

According to the attorney general, Baron and his companies face two counts of first-degree grand larceny, 14 counts of first-degree health care fraud, two counts of second-degree health care fraud, two counts of unlawfully paying kickbacks to Medicaid beneficiaries under the New York Social Services Law, three counts of first-degree money laundering and one count of second-degree money laundering [1]. Gothamist counted 24 charges in all [3]. The indictment ties the two LLCs to specific money laundering counts [2].

If convicted on the top count, Baron faces a maximum of eight and one-third to 25 years in prison [1]. We did not find a plea or a next court date in the sources reviewed.

Red flags for patients

• A pharmacy, or someone outside it, offers you cash, gift cards or gifts to fill your prescriptions there.
• Anyone offers to buy your medication, especially HIV, cancer or other high-cost drugs. Selling prescription drugs back is illegal and can leave you without treatment.
• Pills that look different from your usual supply, or come in unfamiliar, damaged or relabeled packaging.
• Pressure to keep refilling medications you aren't taking, or to sign for drugs you never receive.

What to do

1. Never sell your medication or accept payment to use a particular pharmacy. Talk to your doctor or case manager if you're struggling financially; there are legitimate assistance programs.
2. Check your medications. If pills look unfamiliar, ask the pharmacist and your prescriber before taking them.
3. Review your benefit statements for prescriptions you never picked up.
4. Report it. New York's MFCU takes confidential complaints online or by hotline at (800) 771-7755; in an emergency, call 911 [1]. Outside New York, contact your state's Medicaid Fraud Control Unit or the HHS Office of Inspector General [4].

Case status (as of Oct. 9, 2026)

Defendant	Court	Status as of Oct. 9, 2026	Source
Miguel Baron, 62, Yonkers, N.Y.	N.Y. Supreme Court, Queens County (Ind. No. 1106/2026)	Indicted; arrest announced Oct. 7, 2026; charges include grand larceny, health care fraud, kickbacks and money laundering; also subject of civil asset forfeiture action; presumed innocent	[1], [2], [3]
Guardiola Pharmacy, Inc.	Same	Indicted (corporate defendant); presumed innocent	[1], [2]
Baron Pharmacy, Inc. (d/b/a Baron Specialty Pharmacy)	Same	Indicted (corporate defendant); presumed innocent	[1], [2]
Prime Home Enterprise, LLC	Same	Indicted (corporate defendant, money laundering count); presumed innocent	[2]
Bar&Ca, LLC	Same	Indicted (corporate defendant, money laundering count); presumed innocent	[2]

No defendant has been convicted. Statuses can change.

Sources

1. New York State Office of the Attorney General, "Attorney General James Announces Arrest and Indictment of Queens Pharmacy Owner for Stealing More Than $31 Million," Oct. 7, 2026. https://ag.ny.gov/press-release/2026/attorney-general-james-announces-arrest-and-indictment-queens-pharmacy-owner
2. People of the State of New York v. Miguel Baron, et al., Indictment No. 1106/2026, Supreme Court of the State of New York, Queens County (filed Sept. 2026), as posted by the Office of the Attorney General. https://ag.ny.gov/sites/default/files/court-filings/new-york-v-miguel-baron-et-al-indictment-2026_0.pdf
3. Caroline Lewis, "Queens pharmacy owner charged in alleged $31M Medicaid drugs fraud," Gothamist, Oct. 7, 2026. https://gothamist.com/news/queens-pharmacy-owner-charged-in-alleged-31m-medicaid-drugs-fraud
4. U.S. Department of Health and Human Services, Office of Inspector General, "Report Fraud, Waste, and Abuse," accessed Oct. 9, 2026. https://oig.hhs.gov/fraud/report-fraud/

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