Illinois Man and Indiana Woman Sentenced Respectively to 70 Months and 16 Months in Prison For Selling Unapproved Drugs in Interstate Commerce

SOUTH BEND - Matthew J. Kawa, 48 years old, of Grant Park, Illinois, and his sister Jennifer L. Stechkober, 32 years old, of Michigan City, Indiana, were sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to introducing unapproved new drugs into interstate commerce with the intent to defraud and mislead, announced United States Attorney Adam L. Mildred. Additionally, Kawa pled guilty to illegally importing merchandise into the United States.

Kawa was sentenced to 70 months of prison followed by 1 year of supervised release. Stechkober was sentenced to 16 months of prison followed by 1 year of supervised release. Both defendants were ordered to pay $78,317.52 in restitution. The Court also entered a money judgment against Kawa in the amount of $5 million.

"The owner of Paradigm Peptides and his accomplice have been held accountable, sentenced to prison, and ordered to pay restitution to the identified victims. He and his accomplice lied to the world at large saying their company was legitimate; their products were safe, pure, tested, and manufactured in the United States; and that they were approved by the FDA. They were all lies. What's worse is that the two defendants fleeced an estimated 54,000 people out of over 5 million dollars, in total, and acted with callous disregard for the truth and the significant harm that could and, in some cases, was inflicted on those customers. These customers trusted them and consumed the products in the hope of improving their health or physique and instead were poisoned with known and unknown substances that were illegally imported from China, India, and other countries. Hopefully this outcome will deter bad actors who would try to make quick, easy money selling unregulated and untested products in interstate commerce. Thanks to the extensive efforts by the Food and Drug Administration, Office of Criminal Investigations, and the United States Postal Inspection Service, Assistant United States Attorney Luke N. Reilander and with cooperation of brave victims and witnesses, the Defendants have been held accountable," said U.S. Attorney Adam Mildred.

"The Defendant operated a business called Paradigm Peptides that marketed products online. Through his website, the Defendant and his sister/accomplice illegally sold peptides, Selective Androgen Receptor Modulators ("SARMs"), Human Chorionic Gonadotropin ("HCG"), and other drugs for human consumption without approval from the Food and Drug Administration ("FDA"). He then shipped his products to customers through the mail. On the business website and in representations to customers by email, the Defendant and his employees falsely said that his business was licensed and registered with the FDA, that the business manufactured its products at its own laboratories in the United States, that it tested its products to ensure the highest quality, and that its products were safe and of pharmaceutical quality. In reality, the Defendant imported the products from Asia, including China and India, and he did not test the products for quality before selling them to customers. It was later determined that many of the SARMs sold by Paradigm Peptides were actually testosterone and not the SARM listed on the product's label. Stechkober worked in the business's location in Michigan City, Indiana, where they packaged and shipped products to customers," said U.S. Attorney Adam L. Mildred.

"Kawa continued to sell these products online despite receiving letters in 2020 and 2022 from the FDA warning him that he was marketing and selling unapproved drugs in violation of the Food, Drug and Cosmetic Act. From 2019 to 2024, he sold products to more than 54,000 customers in each of the 50 United States and throughout more than 80 countries worldwide. Kawa derived $5 million in proceeds from the illegal sales. Several customers, including those who ingested testosterone mislabeled as SARMs, reported severe negative effects on their physical, psychological, and mental health after using the products. In particular, customers reported skin irritation and chronic acne; drops in natural testosterone requiring testosterone replacement therapy; cardiac health issues; and stress, anxiety, and other psychological issues up to suicidal ideation," U.S. Attorney Adam Mildred said.

"The FDA's requirements help ensure that individuals receive safe and effective drugs. Evading the FDA process and distributing unapproved drugs to consumers poses a serious risk to public health and safety," said Special Agent in Charge Ronne Malham, FDA Office of Criminal Investigations, Chicago Field Office. "FDA will continue to investigate and hold accountable those who traffic in unapproved drugs."

"The U.S. Postal Inspection Service is dedicated to defending the nation's mail system from criminal activity, preserving the integrity of the U.S. Mail, and protecting the United States Postal Service employees," said Inspector in Charge Felicia B. George, United States Postal Inspection Service, Detroit Division. "The public has a right to expect the U.S. Mail and its contents to be safe, and Mr. Kawa and Ms. Stechkober eroded that trust by distributing unsafe and dangerous substances through the United States Postal Service. The U.S. Postal Inspection Service works tirelessly with our Local, State, and Federal law enforcement partners to protect the public from dangerous substances."

This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Luke N. Reilander.