DENVER (CBS4) – CBS4 investigators have learned new details about a million dollar marijuana bust involving a Denver dispensary. It involved a sting related to shipping pot out of state.

Dimitry Genzer owns the Cannabis and Company dispensary at 44th and Tejon. He and co-defendant Joseph Alejo are both out on bail.

There has been a repeated problem associated with medical marijuana in the state of Colorado. Because it is considered legal and regulated by the state, drug agents are finding it being illegally sold and shipped to other states.

The dispensaries are supposed to only deal with patients on the Colorado medical marijuana registry, but the owner may have gotten stung by a deal that sounded good.

Genzer was arrested after authorities say he agreed to supply 200 pounds of marijuana at $400,000 a week to be picked up at his dispensary and taken out of state.

Joseph Alejo & Dimitry Genzer (credit: Jefferson Co. Sheriff's Office)

Three samples of the pot were obtained from Genzer’s center, which were then shown to an informant. Court documents add, “An undercover officer posing as a buyer told Genzer he ‘comes from Pennsylvania, which doesn’t have medical marijuana and has come into town for the last several months.’ ”

The deal was set up to take place at 44th and Federal Boulevard, but when Alejo arrived in his car and agents observed him unloading boxes of marijuana, he was taken into custody.

About 175 pounds of high-grade marijuana was recovered with a street value of a $1 million by the West Metro Drug Task Force. Some of it was found in a Lakewood storage locker.

CBS4 tried to contact Genzer, but was quickly referred to his lawyer who said there would be no comment.

The two arrested are facing possible charges of distribution of marijuana in excess of 100 pounds. They are to appear in court on Wednesday.

Denver police assisted in the investigation. It began in November.