(South Bend, IN) - Operators of a Michigan City-based internet company have been sentenced in federal court for fraud.
Matthew J. Kawa (48) of Grant Park, Illinois, and his sister Jennifer L. Stechkober (32) of Michigan City were sentenced in South Bend’s U.S. District Court after pleading guilty to selling unapproved drugs and misleading the public.
The pair ran Paradigm Peptides, an online distributor of performance enhancers. The company claimed to be FDA approved, selling safe, pure, and tested products. According to federal prosecutors, this was not true. Investigators say their products contained known and unknown substances that were illegally imported from China, India, and other countries.
Consumers reported severe negative effects on their physical and mental health. In particular, the products reportedly caused skin irritation and chronic acne, drops in natural testosterone requiring testosterone replacement therapy, cardiac health issues, as well as stress, anxiety, and other psychological issues, even leading to suicidal tendencies.
U.S. Attorney Adam L. Mildred said the company’s fraudulent activity was as extensive as it was dangerous. “Stechkober worked in the business’s location in Michigan City,” said Mildred, “where they packaged and shipped products to customers. 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.”
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, and the United States Postal Inspection Service. “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.”
Kawa was sentenced to 70 months of prison followed by one year of supervised release. Stechkober was sentenced to 16 months of prison followed by one 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, equal to the company’s proceeds from the illegal sales.
