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Importer Gets 2 Years in Prison for Falsely Labeling and Declaring Kratom

A Michigan man was sentenced to two years in prison May 8 for illegally importing and distributing kratom, the Department of Justice said in a press release. Matthew Dailey pleaded guilty in January to charges of introducing misbranded drugs into interstate commerce and importing merchandise contrary to law, agreeing also to forfeit $1,000,000 in illegal proceeds.

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Dailey ran Nomad Botanicals, a website where he sold the kratom with the intention that it be used to treat diseases including chronic pain, Lyme disease, rheumatoid arthritis and fibromyalgia, and to treat opioid withdrawal. Dailey and his suppliers, at Dailey’s direction, made false statements to FDA to bring in the kratom and avoid Food and Drug Administration drug regulations and an FDA import alert issued on kratom in 2014, according to court documents.

Specifically, Dailey directed his suppliers to falsely label shipments as other products entirely, such as incense or raw materials for making paint pigments, according to the plea agreement. In response to FDA inquiries on his shipments, Dailey falsely described the kratom to the agency to avoid FDA scrutiny.

The kratom was shipped to Dailey’s residence, where he “repackaged and labeled the illegally imported kratom in his residence, which he did not register as a facility that manufactured, prepared, and processed drugs,” as required by law, DOJ said in the press release. “Dailey then sold and shipped kratom products to consumers throughout the United States for use as a drug without providing any directions for use, such as indications, dosage instructions, methods of administration, or contraindications,” it said.

Email ITTNews@warren-news.com for a copy of the plea agreement.