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A Criminal Investigation Shows CBD, the Most Promising Part of Oregon’s Cannabis Industry, Still Faces Legal Threats

As a Linn County case shows, there's still confusion, and sometimes hostility, around Oregon's newest agricultural industry.

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The packages smelled strongly of marijuana.

That's what a UPS worker told Albany police and a Linn County sheriff's deputy Jan. 18, when four parcels addressed to Key Compounds, a CBD processing company in Albany, arrived from Massachusetts.

That call sparked a monthslong criminal investigation of the company, which processes hemp to create cannabidiol oil, leading to the search and seizure of most of the business's assets. Investigators even tried to obtain a search warrant for the office of the attorney who represents Key Compounds, a highly unusual move.

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