Illegal Cannabis Operation in Southern Oregon Busted; $790,000 Seized, Two Arrested

Illegal Cannabis Operation in Southern Oregon Busted; $790,000 Seized, Two Arrested

MEDFORD, Ore. – After a six-month investigation, authorities in southern Oregon dismantled a large-scale illegal marijuana operation this week, seizing nearly half a million dollars in cannabis products and cash and arresting two men connected to the scheme.


Investigation and Search Warrants

On the morning of August 28, the Illegal Marijuana Enforcement Team (IMET) served 11 search warrants at multiple sites in Ashland and Medford. The warrants targeted both residences and warehouses linked to what investigators described as a black-market cannabis dispensary posing as a legal hemp business.

Authorities said the operation was distributing marijuana under the guise of a hemp handler license issued through the Oregon Department of Agriculture. Hemp licensees are only permitted to handle cannabis products containing less than 0.3 percent THC, the psychoactive component of marijuana. Instead, investigators discovered cannabis testing at more than 20 percent THC — more than 60 times the legal threshold for hemp.


Suspects Arrested

Two men were taken into custody following Thursday’s coordinated raids:

  • Robert Denis Guerin, 67, of Ashland

    • Four felony counts of unlawful possession of a marijuana item

    • One felony count of unlawful delivery of a marijuana item

    • One felony count of unlawful manufacture of a marijuana item

  • Kolton John Chournos, 32, of Medford

    • Four felony counts of unlawful possession of a marijuana item

    • One felony count of unlawful delivery of a marijuana item

    • One felony count of unlawful manufacture of a marijuana item

    • Additional charge: unlawful possession of methamphetamine

Both men are now facing multiple felony charges connected to the illegal distribution, possession, and manufacturing of marijuana.


Drugs, Weapons, and Cash Seized

IMET reported that its officers confiscated:

  • 4,320 pounds of bulk marijuana and extracts

  • 23 grams of methamphetamine

  • Seven firearms

  • Approximately $790,000 in cash from the business

The bulk marijuana was stored across several warehouses in Medford, which investigators said were not licensed for cannabis distribution of any kind.


Discovery of Illegal BHO Lab

During the raids, authorities also uncovered a Butane Honey Oil (BHO) laboratory inside one of the warehouses. BHO labs are considered especially dangerous because they use butane, a highly flammable and volatile chemical, to extract concentrated cannabis oil.

The Medford Fire Department (MFD) dispatched a fire marshal to inspect the site, citing the elevated risk of explosions and fires. Community Service Officers with the Medford Police Department also responded to assist with the investigation.


Multi-Agency Operation

The enforcement action drew support from multiple agencies, including:

  • Jackson County Sheriff’s Office (JCSO)

  • Drug Enforcement Administration (DEA)

  • Oregon State Police (OSP)

  • Grants Pass Police Department

  • Medford Fire Department (MFD)

IMET emphasized that while state regulators are responsible for monitoring licensed cannabis businesses, its focus is squarely on disrupting the black-market marijuana trade in the Rogue Valley.


About IMET

The Illegal Marijuana Enforcement Team is a multi-agency task force funded through a grant from the Oregon Criminal Justice Commission. It includes personnel from JCSO, OSP, and the Jackson County District Attorney’s Office.

Since its creation, the task force has targeted unlicensed grow operations and distribution networks across southern Oregon, where authorities say illegal marijuana cultivation has continued to thrive despite the legalization of recreational cannabis in 2015.


Ongoing Investigation

Detectives say the investigation remains open, with additional leads under review. Further arrests or charges may follow as authorities work through evidence collected from the 11 locations searched.

Community members are encouraged to report suspected illegal marijuana activity directly to IMET. Tips can be provided by calling (541) 774-8311 or emailing IMETtips@jacksoncountyor.gov.


Broader Context

Southern Oregon has long been a hub for cannabis cultivation due to its favorable climate. While recreational marijuana is legal in the state, law enforcement agencies say black-market operations continue to exploit loopholes in hemp licensing to produce and sell high-THC marijuana outside regulated channels.

Officials warn that these illegal businesses undermine legitimate growers, skirt tax obligations, and often pose safety risks through unregulated practices such as unsafe extraction labs.

With Thursday’s operation, IMET says it has delivered another significant blow to the illicit market, while underscoring the continuing challenges of policing cannabis in Oregon’s evolving legal landscape.

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