Queens Pharmacy Owner Accused of Paying Patients Cash to Return Medicine, Then Billing Medicaid Again in $31.8 Million Scheme

A Queens pharmacy owner allegedly paid patients cash to return prescription medication, then resold the same supplies to other customers while collecting millions of dollars in government reimbursements. New York investigators say the operation generated more than $31.8 million in improper payments.

Miguel Baron of Yonkers operated Guardiola Pharmacy and Baron Specialty Pharmacy (legally Baron Pharmacy Inc.) in Jackson Heights. New York Attorney General Letitia James announced a 24-count indictment on Oct. 7, 2026, accusing him and several companies of offenses including grand larceny, health care fraud and money laundering.

According to prosecutors, the pharmacies offered cash to Medicaid patients who filled prescriptions for expensive HIV medications, then encouraged some to sell those medications back instead of taking them. Investigators also alleged that the businesses dispensed products obtained through unauthorized channels, exposing patients to potential health risks while billing government insurance programs…

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