The Federal Bureau of Prisons (BOP) has paused all procurement of flavored nicotine pouches sold to inmates by a newly formed Florida company, following an investigation that revealed the product is not authorized by the Food and Drug Administration (FDA).
The brand, identified as mindSHFT, was being distributed to commissaries across the agency’s 118 institutions as part of an exclusive arrangement with SHFT Enterprise Holdings LLC. The decision to suspend the deal came after a senior BOP official issued an internal memo on September 3 ordering all prisons to cease purchasing the items pending further review.
This action followed a whistleblower complaint sent to Attorney General Todd Blanche and DOJ Inspector General Don Berthiaume by an anonymous federal employee. The complainant warned that distributing improperly authorized or contaminated products could pose serious health risks to those in custody.
In response, a BOP spokesperson stated that the bureau had initially introduced nicotine pouches through commissaries to combat the trafficking of contraband tobacco and nicotine products by criminal organizations within federal prisons. The spokesperson confirmed that all additional purchasing has been suspended while the agency consults with the FDA and completes a legal review of existing inventory. No illnesses or adverse effects have been reported among inmates who used the products.
Records indicate that SHFT Enterprise Holdings LLC was incorporated in Florida just one week after the BOP published a nationwide request for information on May 15 regarding vendors capable of producing FDA-authorized nicotine pouch products. The company’s domain name was created on May 7, and amendments to the BOP trust fund manual, approved by Director William Marshall on the same date, permitted the sale of nicotine pouches in commissaries.
Unlike standard procurement processes, the BOP did not issue a formal request for proposals for this contract. On July 21, Adam Morrow, the trust fund chief, informed federal prisons that the sale was authorized with SHFT Enterprise Holdings as the sole approved vendor. By July 29, BOP officials noted that Citibank could fully process orders and recommended prisons order three tins per inmate to ensure availability.
Internal pricing records show SHFT Enterprise Holdings charged the BOP $6.99 per tin, while inmates were sold the product for $9.10 each. Sources described the items as selling rapidly in prisons where they were available.
Federal law prohibits the sale and marketing of nicotine and tobacco-related products that lack FDA authorization. Legal experts told CBS News that products sold without such approval are deemed “adulterated.” Andrew Goldfarb, a former Justice Department attorney specializing in FDA law, noted that there has been no FDA determination that the product is appropriate for public health protection.
“There is no basis to think that FDA, let alone anyone who might use the product, knows what is in it, where any of the ingredients are sourced from, or the conditions in the facility where it was made,” Goldfarb said.
The website for SHFT Enterprise Holdings promotes the pouches as a healthier alternative to cigarettes, claiming they cause 95% less harm than tobacco by replacing carcinogens and smoke. However, neither the website nor the packaging references FDA authorization. As of this week, only two companies—a subsidiary of Philip Morris International and an Altria Group subsidiary—are authorized by the FDA to sell nicotine pouches.
An FDA spokesperson confirmed that the agency has not issued an authorization for mindSHFT nicotine pouches. While the FDA issued a memo in May exercising enforcement discretion for makers who have submitted accepted and pending applications, the agency does not comment on application statuses. Experts noted that completing such complex applications requires significant scientific and financial resources, posing steep challenges for a recently incorporated small company.
Investigation into the company’s background reveals limited public information beyond its Florida incorporation and a June 4 trademark application. Key contacts listed on government contracting registrations include Kevin Mastaler, who served as chief of staff at fitness supplement company Redcon1, and Ryan Monahan, Redcon1’s former chief marketing officer. Mastaler declined to answer questions about the procurement, stating he wanted to consult his lawyer.
Redcon1 was previously led by Aaron Singerman, a bodybuilder and Trump supporter who served approximately 10 months in federal prison for selling unlawful anabolic steroids and non-FDA-approved dietary supplements. Public records show Singerman and Mastaler maintain other business ties using the same mailing address and law firm as SHFT Enterprise Holdings, though no records directly connect Singerman to the nicotine pouch vendor.
The move has drawn criticism from correctional staff, with one official of 18 years calling the sale “crazy” and citing security concerns given that correction officers are prohibited from smoking on prison grounds.
While the BOP sought market data in May to address financial challenges in its trust fund—which Director Marshall noted was operating at an annual loss of $23 million at the time—sources indicate the trust fund has returned to profitability without the nicotine sales.
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