Montana Securities Fraud Reporting and Investigation

Detected March 17th, 2026

Summary

The Montana State Auditor, Commissioner of Securities and Insurance has updated its website to provide information on reporting securities fraud, investment theft, Ponzi schemes, and pyramid schemes. The agency encourages consumers and professionals to report suspected fraud through their online or paper complaint forms.

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What changed

The Office of the Montana State Auditor, Commissioner of Securities and Insurance has published guidance on its website detailing how to report securities fraud, investment theft, Ponzi schemes, and pyramid schemes. The agency, a criminal justice entity, investigates and prosecutes such fraud and mandates that agents, brokers, or any party with reason to believe fraud has occurred must report it to their office. The guidance provides links to both an online complaint form and a downloadable paper form, along with contact information for the office.

Regulated entities and individuals in Montana, particularly those in financial advisory roles, should familiarize themselves with the types of securities fraud described and ensure they comply with the state's requirement to report suspected fraud. While this document does not impose new obligations, it clarifies the reporting process and the agency's investigative role. Consumers who believe they have been victims of investment scams are directed to use the provided complaint forms or contact the office directly. The document also advises individuals to seek private legal counsel for additional recourse.

What to do next

Review the described types of securities fraud (investment theft, Ponzi schemes, pyramid schemes).
Ensure compliance with Montana law requiring reporting of suspected fraud to the Commissioner of Securities and Insurance.
Familiarize reporting procedures via online or paper complaint forms.

Source document (simplified)

FILE A SECURITIES COMPLAINT OR REPORT FRAUD

The Office of the Montana State Auditor, Commissioner of Securities and Insurance is a criminal justice agency that investigates and prosecutes insurance and securities fraud. Protecting consumers and rooting out fraud is our top priority.

Montana law requires agents, brokers, or anyone with reason to believe fraud has occurred to report the suspected fraud to our office.

INVESTMENT ISSUES

If you believe you may have been the victim of a scam or fraud, or feel that you may have grounds to file a complaint against a financial professional, please fill out the Online Complaint Form linked below. You may also contact us to discuss your issue using the contact information below.

Because we cannot give you legal advice, you may wish to contact a private attorney to determine what additional courses of action are available to you.

CONSUMER or PROFESSIONAL ONLINE COMPLAINT FORM

If you would rather fill out a paper complaint and mail it or fax it to our office, please download the form HERE.

CONTACT INFORMATION

MAIL
The Office of the Montana State Auditor,
Office of the Commissioner of Securities and Insurance
840 Helena Avenue
Helena, Montana 59601

FAX
406-444-5558

EMAIL
csi.securities@mt.gov

COMMON TYPES OF

SECURITIES FRAUD

INVESTMENT THEFT

Investment brokers who steal directly from their clients’ accounts for personal gain are guilty of investment theft. Investors may not immediately notice the missing money, and if they do, the broker may try to dodge the subject or blame the loss on a drop in the market.

PONZI SCHEMES

Investment fraud that involves the payment of returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business.

PYRAMID SCHEMES

Pyramid schemes are fraudulent because compensation is primarily derived from the fees paid by new recruits to the scheme. Participants have to recruit others to the plan to make money. As participants join, additional people must be recruited so that current participants can be paid. The pyramid eventually collapses because participants exhaust the pool of people available and willing to join. Often goods or services are offered in an attempt to appear legal.

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