Two Arrested in Black-Market Dispensary Bust in Ashland and Medford

Medford, Oregon- After a six-month investigation, detectives with the Illegal Marijuana Enforcement Team served 11 search warrants Thursday morning at residences and warehouses in Ashland and Medford connected to what authorities said was a black-market cannabis dispensary operation.

Two men were arrested in the case. Robert Denis Guerin, 67, of Ashland, was charged with four felony counts of unlawful possession of a marijuana item, along with one felony count each of unlawful delivery and unlawful manufacture of a marijuana item. Kolton John Chournos, 32, of Medford, was charged with the same marijuana-related felonies and an additional charge of unlawful possession of methamphetamine.

Investigators said the men were operating an illegal dispensary under the guise of a hemp license. During the searches, detectives also discovered what officials called a dangerous and illegal Butane Honey Oil laboratory in one of the warehouses.

Search warrants were served at a residence on the 2800 block of Orrin Street in Medford, a residence on the 500 block of West Nevada Street in Ashland, and at three warehouses in the 800 block of South Riverside Avenue in Medford.

Authorities seized about 4,320 pounds of bulk marijuana and marijuana extracts, 23 grams of meth, seven firearms and roughly $790,000 from the business. Cannabis seized during the searches tested at more than 20% THC, investigators said — about 66 times the legal threshold allowed under a hemp handler permit.

“There was no licensing for the distribution of cannabis at the warehouse locations,” investigators said. Hemp licenses from the Oregon Department of Agriculture do not allow the growing, handling, processing or selling of marijuana that exceeds 0.3% THC.

The Medford Fire Department’s Fire Marshal and Medford Police Department community service officers also responded to investigate the butane extraction lab. Authorities noted that BHO labs carry a high risk of fires and explosions because of the volatile nature of butane.

IMET was assisted in the operation by the Jackson County Sheriff’s Office, Drug Enforcement Administration, Oregon State Police, Grants Pass Police Department and the Medford Fire Department.

IMET is a multi-agency task force funded by the Oregon Criminal Justice Commission that targets black-market marijuana operations in the Rogue Valley. It includes personnel from the sheriff’s office, Oregon State Police and the Jackson County District Attorney’s Office.

The investigation is ongoing, and detectives said they are pursuing additional leads. No further information has been released.

All suspects are believed innocent until proven guilty in a court of law