Federal prosecutors in Utah announced an April indictment alleging an osteopathic physician sold misbranded, non-FDA-approved peptides from China to patients between February 2024 and April 2025.
Unlabeled Peptides Were Allegedly Imported and Sold to More Than 200 Patients
On April 1, 2026, the U.S. Attorney’s Office for the District of Utah announced that a federal grand jury indicted a Utah physician over alleged misbranded, non-FDA-approved peptides. According to the press release and federal indictment, the physician allegedly obtained peptide orders from China, added labels before clinic use, and sold the products to more than 200 patients. The named peptide orders included tirzepatide, semaglutide, BPC-157, TB500, and NAD+, among others, which may overlap with Med Spa weight-loss, wellness, longevity, and FDA compliance considerations.
Allegations Involve Imported Peptides, Vial Labeling, and Fraud
Filed on April 1, 2026, the federal indictment named Justin Bradley Watkins, DO, as a Utah-licensed osteopathic physician and owner of TruHealth Clinic, LLC, in Pleasant View, Utah. Categorized in the press release as financial fraud, the case includes allegations that Watkins added labels to vials or bottles before patient sales, while the labels did not identify the manufacturer, packer, or distributor.
Prosecutors alleged Watkins used an intermediary to obtain discounted, non-FDA-approved peptides from XCE Peptides, believed to be located in China, from around February 2024 to around April 2025. The peptide orders included tirzepatide, semaglutide, BPC-157, TB500, and NAD+, among others.
The indictment outlined several allegations:
- Obtaining Misbranded Drugs: Watkins allegedly paid an intermediary to order peptides online from XCE Peptides.
- Sale of Misbranded Drugs: The peptides allegedly arrived in unlabeled vials or bottles. Watkins allegedly added labels before providing them to clinic staff and selling the peptides to more than 200 patients.
- Lack of Comprehensive Medical History: Watkins allegedly failed to obtain a comprehensive medical history before recommending and delivering XCE peptides to some patients.
- Self-injection Supplies: Prosecutors alleged some patients received XCE peptide syringes and vials for self-injection without careful patient monitoring protocols in place.
- Attempt to Conceal Continued Sales: The indictment alleges Watkins asked the intermediary to create an LLC that would continue purchasing peptides from XCE and selling them directly to Watkins’ patients.
The indictment stated Watkins is charged with eight counts involving misbranded drugs, intent to defraud or mislead, and aiding and abetting. His initial appearance was scheduled for April 22, 2026. As of this reporting, no public updates or court decisions were found in publicly available sources.
Press Release: U.S. Attorney’s Office, District of Utah
According to the U.S. Attorney’s Office for the District of Utah, which announced the indictment in an April 1, 2026, press release, a federal grand jury charged Justin Bradley Watkins, DO, in a case involving alleged receipt and delivery for pay of misbranded drugs. The federal indictment outlines the alleged peptide orders, labeling issues, patient sales, and eight counts involving misbranded drugs with intent to defraud or mislead.
Med Spa Compliance Context for Peptide-Related Services
The Utah indictment describes alleged peptide sales involving non-FDA-approved products, intermediary ordering from a company believed to be located in China, missing source-identifying label information, and patient-facing use. For Med Spa operators, those allegations relate to how peptide-related services are sourced, labeled, evaluated, documented, and verified before patient use or distribution.
Prosecutors alleged Watkins knew the peptides were not FDA-approved and were not supported by proper testing or clinical trials. The indictment also alleges Watkins affixed labels before providing the products to clinic staff, but the labels failed to identify the manufacturer, packer, or distributor. The case also includes allegations involving incomplete medical histories, consent forms that failed to identify the manufacturer, packer, or distributor, and self-injection supplies provided without careful monitoring protocols.
For Med Spa operators offering peptide or GLP-1-related services, the allegations correspond to several compliance factors:
- Peptide source, FDA status, and lawful pathway for use
- Product labeling and source-identifying information
- Patient evaluation and treatment documentation
- Prescribing, dispensing, and administration records
- Self-injection instructions for appropriate home use
- In-clinic administration and monitoring records
The press release states the case is being investigated by the FDA-OCI and the Utah Division of Professional Licensing. Related GLP-1 enforcement involving Connecticut settlements with a Med Spa and online platform addressed non-FDA-approved compounded weight-loss injections and “research grade” GLP-1 sales to U.S. consumers.
Prior FDA letters on telehealth marketing and prescriber compliance addressed GLP-1 services, patient-facing claims, prescribing models, and drug sourcing. Peptide-related state oversight has also emerged in Alabama, where the medical board warned licensees about the use of research-grade peptides.
Clinical and Operational Implications for Med Spa Peptide Services
- Verify the source, FDA status, and lawful pathway for peptide or GLP-1-related products before patient use.
- Confirm product labels and accompanying records contain required source-identifying information before products are supplied or administered.
- Document required patient evaluation, treatment rationale, medication order, and clinical instructions before prescribing or administering products.
- Maintain prescribing, dispensing, administration, and self-injection instruction records when products are administered in-office or prescribed for home use.
- Align wellness, longevity, and weight-loss marketing with the documented medical service, prescribing model, and product-sourcing records.
What to Watch Next in Peptide Oversight and FDA Compliance
The Utah physician’s initial appearance was scheduled for April 2026. As stated in the U.S. Attorney’s Office press release, the case is being investigated by the FDA-OCI and the Utah Division of Professional Licensing. Further federal or state updates may provide additional context for licensed prescribers and Med Spa operators offering peptide-category services.
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Image Attribution: “Courthouse slc” by Ricardo630, via Wikimedia Commons, licensed under CC BY-SA 4.0.
