Smoke shop owners settle with state for $152K

DENVER —  A $152,000 settlement has been reached between the state of Colorado and the owners of a chain of smoke shops – including some retailers in the Boulder Valley and Northern Colorado – to resolve allegations that the stores sold kratom products in excess of the legal potency limit.

“Like other legally mandated products, we keep a careful eye on the sale of kratom,” Attorney General Phil Weiser said in a news release his office issued Monday. “If a wrongdoer tries to dodge the law and sell an addictive product that failed to comply with legal limits and labeling requirements, we will hold them and their businesses accountable.”

Sahansila Karki and Gokul Tiwari are the founders and owners of the wholesale distribution company DNB Distro as well as 15 brick-and-mortar smoke shops, most of which fall under the “Million Smoke N Vape” brand. Those shops include locations at 2130 Main St., Unit 13, in Longmont; 5750 W. 10th St. in Greeley; and 9975 Wadsworth Parkway, Unit B, in Westminster.

Also named as a party to the settlement was Heart Wish Inc., which operates NoCo Vapor at 1112 Oakridge Drive, Unit 104, in Fort Collins.

According to the news release, since 2020, Karki’s and Tiwari’s shops have sold convenience store products, smoking paraphernalia, tobacco and kratom products. During a state investigation, the attorney general’s office found that Karki and Towari failed to ensure the kratom products adhered to labeling and packaging requirements and sold them at levels exceeding the allowable limit of 7-hydroxymitragynine (“7-OH”).  While the alkaloid substance 7-OH naturally occurs in the kratom plant, companies manufacture concentrated forms of 7-OH products that interact with the same brain receptors as opioids, which can be extremely potent and addicting.

As part of the settlement, Karki and Tiwari agreed to:

• Fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act.
• Test any kratom products prepared, distributed, advertised, sold or offered for sale in Colorado to ensure they comply with all local, state and federal laws.
• Document all kratom product purchases from third parties with invoices and receipts.
• Pay $152,000 to the state. If Karki and Tiwari violate the terms of the settlement, they are required to pay an additional $500,000 to the state.

This settlement is the latest action taken by the attorney general’s office under the Daniel Bregger Act, which regulates the sale of kratom products in Colorado. Bregger was a 33-year-old Denver man who was found dead in his room, and an autopsy showed he died from the combined toxic effects of kratom and diphenhydramine, the active ingredient in Benadryl.

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