A state judge has ruled that controversial political group American Tradition Partnership violated Montana’s campaign finance and election laws after the group failed to produce requested documents.

Helena District Court Judge Jeffrey Sherlock ruled Jan. 4 that ATP’s actions during the 2008 election made it a political committee as defined by the state, and that ATP must report its spending and donors as required by state law.

ATP has claimed that its tax-exempt status as a nonprofit social welfare organization meant it wasn’t required to reveal its members and spending.

But Sherlock ruled that ATP used its nonprofit status “as a subterfuge to avoid compliance with state disclosure and disclaimer laws.” He had dismissed much of ATP’s lawsuit three weeks earlier after the group failed to produce requested documents in court.

Montana Commissioner of Political Practices James Murry said he will likely seek financial penalties against ATP.

James Brown, ATP’s attorney, said the group’s board of directors is considering its next move. He noted that the legal system left ATP in a conflict.

“In light of this order, if you’re going to challenge the state’s ability to regulate you, you do not want to be the one who files suit because all of the materials that you want to keep private become public just because you filed suit,” Brown said.

Also on Jan. 4, ATP’s executive director announced he was leaving the group. Donny Ferguson said he was leaving to work as a spokesman for Rep. Steve Stockman, R-Texas.