Mont. Code Ann. » TITLE 30. TRADE AND COMMERCE · CHAPTER 10. SECURITIES REGULATION · Part 3. Offenses, Penalties, and Immunities
Montana Code Annotated

Mont. Code Ann. § 30-10-301 (2026)

Fraudulent And Other Prohibited Practices

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 30
  3. CHAPTER 10
  4. Part 3
  5. 30-10-301 Fraudulent and other prohibited practices

TITLE 30. TRADE AND COMMERCE

CHAPTER 10. SECURITIES REGULATION

Part 3. Offenses, Penalties, and Immunities

Fraudulent And Other Prohibited Practices

30-10-301. Fraudulent and other prohibited practices. (1) It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly, in, into, or from this state, to:

(a) employ any device, scheme, or artifice to defraud;

(b) make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or

(c) engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person.

(2) (a) It is unlawful for any person who receives, directly or indirectly, any consideration from another person for advising the other person as to the value of securities or their purchase or sale, whether through the issuance of analysis or reports or otherwise:

(i) to employ any device, scheme, or artifice to defraud the other person;

(ii) to engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon the other person; or

(iii) without disclosing to the client in writing before the completion of the transaction the capacity in which the person is acting and obtaining the consent of the client to the transaction:

(A) acting as principal for the person's own account, to knowingly sell any security to or purchase any security from a client; or

(B) acting as agent for a person other than the client, to knowingly effect the sale or purchase of any security for the account of the client.

(b) The prohibitions of subsection (2)(a)(iii) do not apply to any transaction with a customer of a broker-dealer if the broker-dealer is not being compensated for rendering investment advice in relation to the transaction.

(3) In the solicitation of advisory clients, it is unlawful for a person to:

(a) make a false statement of a material fact; or

(b) omit a material fact necessary to make a statement not misleading in light of the circumstances under which it is made.

(4) Except as permitted by rule or order of the commissioner, it is unlawful for any investment adviser who is registered or required to be registered to enter into, extend, or renew any investment advisory contract unless it provides in writing that:

(a) the investment adviser may not be compensated on the basis of a share of capital gains upon or capital appreciation of the funds or any portion of the funds of the client;

(b) an assignment of the contract may not be made by the investment adviser without the consent of the other party to the contract; and

(c) the investment adviser, if a partnership, shall notify the other party to the contract of any change in the membership of the partnership within a reasonable time after the change.

(5) Subsection (4)(a) does not prohibit an investment advisory contract that provides for compensation based upon the total value of a fund averaged over a definite period or as of definite dates or taken as of a definite date. "Assignment", as used in subsection (4)(b), includes any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor or of a controlling block of the assignor's outstanding voting securities by a security holder of the assignor; but if the investment adviser is a partnership, an assignment of an investment advisory contract is not considered to result from the death or withdrawal of a minority of the members of the investment adviser having only a minority interest in the business of the investment adviser or from the admission to the investment adviser of one or more members who, after admission, will be only a minority of the members and will have only a minority interest in the business.

(6) It is unlawful for an investment adviser to take or have custody of any securities or funds of any client if:

(a) the commissioner by rule prohibits custody; or

(b) in the absence of rule, the investment adviser fails to notify the commissioner that the investment adviser has or may have custody.

(7) It is unlawful for a multilevel marketing company or a person who directly or indirectly controls a multilevel marketing company, in the course of transacting business in, into, or from this state, to:

(a) employ any device, scheme, or artifice to defraud;

(b) make a false statement of a material fact;

(c) omit a material fact necessary to make a statement not misleading in light of the circumstances under which it is made; or

(d) engage in any other act, practice, or course of business that operates or would operate as a fraud or deceit upon any person.

History: En. Sec. 5, Ch. 251, L. 1961; R.C.M. 1947, 15-2005; amd. Sec. 1, Ch. 280, L. 1981; amd. Sec. 9, Ch. 272, L. 1987; amd. Sec. 10, Ch. 533, L. 1997; amd. Sec. 2, Ch. 286, L. 2013; amd. Sec. 2, Ch. 318, L. 2015.

Notes of Decisions
Cited in 15 cases (1 in the last 5 years), 1979–2021 · leading case: State v. Parks, 2013 MT 280 (Mont. 2013).
Sort: Relevance Newest Treatment
State v. Parks, 2013 MT 280 (Mont. 2013). · cites it 52× “The State argued to the Court that § 30-10-301, MCA, clearly indicated a legislative intent to impose absolute liability, and therefore, the requisites of § 45-2-104, MCA, were satisfied.”
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). · cites it 85× “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Thiel v. Taurus Drilling Ltd. 1980-ii, 710 P.2d 33 (Mont. 1985). · cites it 11× “Section 30-10-301, MCA, of the Securities Act provides that it is unlawful for any person in connection with the offer, sale or purchase of securities to engage in various prohibited practices.”
Chor v. Piper, Jaffray & Hopwood, Inc., 862 P.2d 26 (Mont. 1993). · cites it 14× “According to Chor, a duty arose from the commercial nature of the relationship between herself and Piper, the admissions of Piper, and § 30-10-301(1), MCA, concerning prohibited practices in securities transactions.”
Brown v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 640 P.2d 453 (Mont. 1982). · cites it 6× “Section 30-10-301, MCA. The broker is to refrain from *10 making any untrue statement of a material fact or from omitting to state a material fact which would be misleading to his customer.”
State v. Duncan, 593 P.2d 1026 (Mont. 1979). · cites it 6× “1947, now section 30-10-301 MCA; Count III charged failure to register securities violation of section 15-2007, R.”
State v. Himes, 2015 MT 91 (Mont. 2015). · cites it 6× “401(l)(j), and not the statute defining fraudulent practices under the Securities Act, § 30-10-301(l)(b), MCA, which makes it unlawful for a person to “make any untrue statement of a material fact or omit to state a material fact,” but the statute does not include the…”
Garza v. Forquest Ventures, Inc., 2015 MT 284 (Mont. 2015). · cites it 6× “Section 30-10-301(1), MCA. The facts regarding accuracy of Forquest’s representations were not the type of “publicly available” information *197 at issue in Thieltges .”
Kloss v. Edward D. Jones & Co., 2002 MT 129 (Mont. 2002). · cites it 2× “In Chor , we held that although § 30-10-301(1), MCA, may create an implied code of conduct for brokers, a violation of which may constitute a breach of the duty the broker owes to a client, that duty is not necessarily fiduciary in nature.”
Brown v. Merrill Lynch, Pierce, Fenner, Etc., 640 P.2d 453 (Mont. 1982). · cites it 6× “Section 30-10-301, MCA. The broker is to refrain from making any untrue statement of a material fact or from omitting to state a material fact which would be misleading to his customer.”
Willems v. U. S. Bancorp Piper Jaffray, Inc., 2005 MT 37 (Mont. 2005). · cites it 2× “DISCUSSION ¶15 Did the District Court err in holding that the PAT Plus Agreements created a fiduciary duty between Piper and Willems that was breached by Piper? ¶16 In Chor , we held that § 30-10-301(1), MCA, creates an implied code of conduct for brokers, violations of which…”
State v. R. Brandt, 2020 MT 79 (Mont. 2020). · cites it 6× “The District Court defined fraudulent practices in accordance with § 30-10-301(1), MCA: “It is unlawful for any person, in connection with the offer or sale [of] any security, directly or indirectly, in, into, or from this state, to willfully engage in any act, practice, or…”
Show all 15 citing cases →
Mont. Code Ann. § 30-10-301(1): 8 cases
Chor v. Piper, Jaffray & Hopwood, Inc., 862 P.2d 26 (Mont. 1993). “According to Chor, a duty arose from the commercial nature of the relationship between herself and Piper, the admissions of Piper, and § 30-10-301(1), MCA, concerning prohibited practices in securities transactions.”
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Thiel v. Taurus Drilling Ltd. 1980-ii, 710 P.2d 33 (Mont. 1985). “Section 30-10-301, MCA, of the Securities Act provides that it is unlawful for any person in connection with the offer, sale or purchase of securities to engage in various prohibited practices.”
Kloss v. Edward D. Jones & Co., 2002 MT 129 (Mont. 2002). “In Chor , we held that although § 30-10-301(1), MCA, may create an implied code of conduct for brokers, a violation of which may constitute a breach of the duty the broker owes to a client, that duty is not necessarily fiduciary in nature.”
Garza v. Forquest Ventures, Inc., 2015 MT 284 (Mont. 2015). “Section 30-10-301(1), MCA. The facts regarding accuracy of Forquest’s representations were not the type of “publicly available” information *197 at issue in Thieltges .”
Mont. Code Ann. § 30-10-301(1)(a): 1 case
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Mont. Code Ann. § 30-10-301(1)(b): 3 cases
State v. Parks, 2013 MT 280 (Mont. 2013). “The State argued to the Court that § 30-10-301, MCA, clearly indicated a legislative intent to impose absolute liability, and therefore, the requisites of § 45-2-104, MCA, were satisfied.”
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
State v. Parks, 2015 MT 32N (Mont. 2015).
Mont. Code Ann. § 30-10-301(1)(c): 1 case
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Mont. Code Ann. § 30-10-301(b): 2 cases
Brown v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 640 P.2d 453 (Mont. 1982). “Section 30-10-301, MCA. The broker is to refrain from *10 making any untrue statement of a material fact or from omitting to state a material fact which would be misleading to his customer.”
Brown v. Merrill Lynch, Pierce, Fenner, Etc., 640 P.2d 453 (Mont. 1982). “Section 30-10-301, MCA. The broker is to refrain from making any untrue statement of a material fact or from omitting to state a material fact which would be misleading to his customer.”
Mont. Code Ann. § 30-10-301(l)(a): 1 case
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Mont. Code Ann. § 30-10-301(l)(b): 4 cases
State v. Parks, 2013 MT 280 (Mont. 2013). “The State argued to the Court that § 30-10-301, MCA, clearly indicated a legislative intent to impose absolute liability, and therefore, the requisites of § 45-2-104, MCA, were satisfied.”
State v. Himes, 2015 MT 91 (Mont. 2015). “401(l)(j), and not the statute defining fraudulent practices under the Securities Act, § 30-10-301(l)(b), MCA, which makes it unlawful for a person to “make any untrue statement of a material fact or omit to state a material fact,” but the statute does not include the…”
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Garza v. Forquest Ventures, Inc., 2015 MT 284 (Mont. 2015). “Section 30-10-301(1), MCA. The facts regarding accuracy of Forquest’s representations were not the type of “publicly available” information *197 at issue in Thieltges .”
Mont. Code Ann. § 30-10-301(l)(c): 1 case
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
Mont. Code Ann. § 30-10-301(lXa): 1 case
Knowles v. State Ex Rel. Lindeen, 2009 MT 415 (Mont. 2009). “" Upon learning of these events, the Department amended its Notice to allege an additional violation of § 30-10-301(1), MCA (fraud or deceit), plus violations of § 30-10-201(1), MCA (transacting business as an unregistered salesperson) and § 30-10-201(13)(b), MCA (willfully…”
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