The U.S. Attorney’s Office for the Northern District of Indiana announced that Matthew Kawa and Jennifer L. Stechkober were sentenced in a federal case involving nationwide sales of peptides, SARMs, hCG, and other unapproved drugs through Paradigm Peptides in Michigan City, Indiana.
Federal Case Involved Nationwide Sales of Peptides and Other Unapproved Drugs
On July 30, 2026, a federal court in the Northern District of Indiana sentenced Matthew Kawa, owner of Paradigm Peptides, to nearly six years in prison after he pleaded guilty in a case involving unapproved drugs sold through the company’s online business. Jennifer L. Stechkober, a Paradigm Peptides employee, received a sentence of one year and four months in prison. The case may have implications for Med Spa, wellness, longevity, and hormone-focused businesses that offer or facilitate access to peptide-based products.
U.S. Attorney’s Office Details Nationwide Sales of Unapproved Drugs
In a July 30, 2026 press release, the U.S. Attorney’s Office for the Northern District of Indiana reported that Paradigm Peptides, also known as Paradigm R.E. LLC, sold peptides, human chorionic gonadotropin (hCG), selective androgen receptor modulators (SARMs), and other products through an online business that shipped from Michigan City, Indiana, to customers nationwide between April 2019 and March 2024.
Federal investigators determined that many products advertised and labeled as SARMs contained testosterone, a controlled substance. Investigators also stated that the SARM, hCG, and peptide products sold by the company were new drugs that had not been approved by the FDA.
Kawa and Stechkober pleaded guilty on December 10, 2025, the U.S. Attorney’s Office reported. At sentencing, the court ordered Kawa to serve 70 months in prison followed by one year of supervised release. Stechkober received 16 months in prison followed by one year of supervised release. The court ordered both to pay $78,317.52 in restitution jointly and severally.
A July 30, 2026, CBS News report added details from court filings, including prosecutors’ estimate that Paradigm had about 54,000 unique customers across all 50 states and 80 countries. CBS also reported that products were imported from China, India, and other countries despite claims that they were made in the United States and tested by third-party laboratories.
CBS further reported that Kawa admitted laboratory certificates had been forged and that products labeled “for research use only” were being marketed and sold for human consumption. CBS News also detailed federal testing of six compounds designed to mimic testosterone, all of which were found to contain testosterone.
Source Attribution
According to the July 30, 2026, U.S. Attorney’s Office for the Northern District of Indiana sentencing release, Kawa and Stechkober were sentenced in connection with the sale of peptide, hCG, SARM, and other drug products through Paradigm Peptides. A July 30, 2026, CBS News report provides additional details from court filings and the sentencing proceeding.
FDA Drug Approval, Peptide Compounding, and Product Sourcing for Med Spas and Wellness Operations
The Paradigm Peptides case involved the sale of peptides, hCG, SARMs, and other drugs for human consumption without FDA approval. The case also followed prior FDA contact with the business. The U.S. Attorney’s Office reported that Kawa continued selling the products after receiving FDA warning letters in 2020 and 2022 about marketing and selling unapproved drugs.
Federal prosecutors stated that the company sold peptides, hCG, SARMs, and other drugs for human consumption without FDA approval, while representing that its products were safe, tested, manufactured in the United States, and associated with FDA licensing or registration. The case also involved sourcing and product-verification concerns. Prosecutors stated that products were imported from China, India, and other countries and that Kawa did not test them for quality before sale. Federal investigators later determined through testing that many products labeled as SARMs contained testosterone instead.
Section 503A of the Federal Food, Drug, and Cosmetic Act places conditions on the bulk drug substances that state-licensed physicians and pharmacists may use in compounding. FDA briefing documents released in July 2026 addressed seven peptide-related bulk drug substances proposed for inclusion on the 503A Bulks List. FDA recommended against adding the reviewed free base and acetate forms, including BPC-157 and TB-500, to the list for use in traditional pharmacy compounding.
A separate federal case announced in Utah on April 1, 2026, involved allegations that an osteopathic physician obtained non-FDA-approved peptides from China, added labels before clinic use, and sold the products to more than 200 patients. The indictment identified products including tirzepatide, semaglutide, BPC-157, TB500, and NAD+.
For Med Spa, wellness, longevity, and hormone-focused operators, the federal actions provide context surrounding FDA approval status, imported peptide products, product labeling, and the pathways through which peptide-based products may be supplied for patient use.
Products imported from China, India, and other countries were sold while being represented as U.S.-manufactured and quality-tested.
Practical Implications for Med Spas and Wellness Operators
- Verify product sourcing, manufacturing origin, and supplier documentation before use.
- Confirm FDA approval status or the applicable compounding pathway for peptide-based products.
- Review product labels and ingredient information against the substances being supplied.
- Validate laboratory testing, purity claims, and supporting quality documentation.
- Assess “research use only” products before they are offered, supplied, or used for human treatment.
- Establish practitioner authority for prescribing, dispensing, and administering controlled and peptide-based products under applicable state law.
- Audit online advertising and cross-state sales practices for product claims, prescribing requirements, licensure, and state-specific requirements.
What to Watch Next
The Paradigm Peptides sentencing concludes the federal criminal case against Kawa and Stechkober as of this reporting. Additional FDA guidance, advisory committee recommendations, and federal enforcement actions may further clarify how peptide products are treated when marketed, compounded, or supplied for human use.
About Spakinect
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Image Attribution: “Courtroom at the Robert A. Grant Federal Building & U.S. Courthouse, South Bend, Indiana” by Carol M. Highsmith, public domain, via Wikimedia Commons.
