State v. Duncan
Montana Supreme Court
593 P.2d 1026 (1979)
Norman Duncan (defendant) headed a company selling package-sealer agreements after its automated machines could not properly seal a special child-proof packaging; the State (plaintiff) alleged Duncan made or directed several false statements to induce people to buy these sealer contracts, including falsely promising that 5 percent of each buyer's deposit would be held in escrow to guarantee repayment (when only a nominal amount was ever deposited, and only just before investigators arrived) and falsely capping the number of contracts sold in one area at 55 when far more were actually sold there and statewide. After a bench trial, Duncan was convicted of deceptive practices and failure to register securities, receiving concurrent prison sentences, and he appealed, arguing insufficient evidence of any false statement.
Whether a corporate officer is guilty of deceptive practices under Montana law when he purposely or knowingly makes, or directs another to make, a false or deceptive statement to the public or any person to promote or procure the sale of property or services.