Jackson County Raids Expose Fake Hemp Operation Linked to National Black-Market Drug Trade

By Diane Megaw On Aug 30, 2025

Task Force Busts Medford Hemp Dispensary Selling Black-Market Cannabis Nationwide | Courtesy: Jackson County Sheriff Oregon

JACKSON COUNTY, Ore. — Following a six-month-long investigation, the Jackson County Sheriff’s Office in Oregon and the Illegal Marijuana Enforcement Team (IMET), armed with 11 search warrants, conducted searches at residences and warehouses in Ashland and Medford on Thursday.

They discovered a dangerous and illegal Butane Honey Oil (BHO) laboratory operating under a hemp license, along with significant amounts of drugs, guns, and cash. Two arrests were made.

Medford “Hemp” Factory Manufacturing BHO Bust With Drugs, Guns & Cash

IMET, assisted by Jackson County Sheriff’s Office (JCSO), Drug Enforcement Administration, Oregon State Police (OSP), Grants Pass Police Department, and Medford Fire Department (MFD), secured search warrants following their investigation into a black-market cannabis dispensary operation which operated from a Butane Honey Oil (BHO) laboratory in one of the warehouses under a hemp licence.

While the operation held a hemp handler permit through the Oregon Department of Agriculture, there was no licensing for the distribution of cannabis at the warehouse locations. Under hemp licensing, businesses may not grow, handle, process, or sell marijuana that exceeds .3 percent THC.

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

Investigators seized cannabis testing at over 20 percent THC- approximately 66 times the legal amount.

The MFD Fire Marshal and Medford Police Department Community Service Officers responding to the scene to investigate the illegal BHO laboratory found a BHO lab in a warehouse. BHO labs are at higher risk of fires and explosions due to the use of butane, a highly flammable and volatile substance.

The task force seized approximately 4,320 lbs. of bulk marijuana and marijuana extracts, 23 grams of meth, and seven firearms. An estimated $790,000 was also seized from the illegal cannabis business, and two suspects were arrested.

The two arrests in the investigation were:

Robert Denis Guerin, 67, of Ashland: Charged with four felony counts of unlawful possession of a marijuana item, and one felony count each of unlawful delivery of a marijuana item and unlawful manufacture of a marijuana item.
Kolton John Chournos, 32, of Medford: Charged with four felony counts of unlawful possession of a marijuana item, one felony count each of unlawful delivery of a marijuana item and unlawful manufacture of a marijuana item, and unlawful possession of methamphetamine.

To report a suspected crime involving marijuana, call the IMET tip line at (541) 774-8311 or email [email protected].