A six-month investigation into a black-market cannabis dispensary operating under the cover of a state-issued hemp license ended Thursday, August 28, with raids across Medford and Ashland that authorities say exposed a nationwide distribution scheme. Detectives with the Illegal Marijuana Enforcement Team executed 11 search warrants at homes and warehouses tied to the operation, seizing thousands of pounds of marijuana, a dangerous butane honey oil laboratory, methamphetamine, firearms, and nearly $800,000 in cash.
Two men were taken into custody. Robert Denis Guerin, 67, of Ashland, faces felony charges for unlawful possession, delivery, and manufacture of marijuana. Kolton John Chournos, 32, of Medford, faces the same marijuana-related charges in addition to unlawful possession of methamphetamine. Both are accused of playing key roles in operating the dispensary, which posed as a hemp business while trafficking high-THC marijuana far beyond Oregon.
The searches uncovered an estimated 4,320 pounds of bulk marijuana and marijuana extracts, a haul valued in the millions on the street market. Investigators also found 23 grams of methamphetamine, seven firearms, and approximately $790,000 in cash linked to the illicit sales. Locations targeted in the raids included a residence on Orrin Street in Medford, a residence on West Nevada Street in Ashland, and three warehouses on South Riverside Avenue in Medford.
The cannabis seized tested at over 20 percent THC, which is about sixty-six times stronger than the maximum allowed under federal hemp regulations. Businesses holding hemp handler permits through the Oregon Department of Agriculture are restricted to hemp products that contain no more than 0.3 percent THC. Investigators said there was no licensing in place for marijuana sales or distribution at the warehouse sites.
In one of the warehouses, authorities discovered a clandestine butane honey oil laboratory. These labs use butane, a highly volatile chemical, to extract concentrated cannabis oil and have been linked to explosions and fires due to unsafe conditions. Fire officials from the Medford Fire Department were called to the scene to assess the hazards, underscoring the risk such facilities pose not only to those involved in production but also to surrounding neighborhoods.
The coordinated operation drew support from multiple agencies, including the Jackson County Sheriff’s Office, Drug Enforcement Administration, Oregon State Police, Grants Pass Police Department, and Medford Fire Department. IMET, the task force that led the investigation, is a multi-agency team funded by the Oregon Criminal Justice Commission and staffed by deputies, state police, and prosecutors from the Jackson County District Attorney’s Office.
Detectives say the investigation remains ongoing, with additional leads being pursued to determine the full scope of the enterprise. The discovery of the BHO lab, firearms, and nearly a half-ton of marijuana underscores what officials describe as a continuing challenge in the Rogue Valley, where black-market operations operate outside of regulations designed to keep the cannabis industry safe and legal. Further arrests are possible as the case expands.
Authorities have urged the public to remain vigilant and to report information on illegal marijuana activity to the IMET tip line at 541-774-8311 or by email at IMETtips@jacksoncountyor.gov.