Residency fraud is, in my opinion, a big problem. Every state I have been to treat their residents different than non-residents, as they should. Alaska treats non-citizens different than non-residents also. You see this in drawing tags, prices, guide requirements, etc. Our state constitution requires that Alaska residents receive priority. I agree with it. I would guess that Montana's constitution does also.
I live in Alaska but I've hunted in Oregon for the last 27 years straight, plus some years prior to that. I own a hobby farm there of about 140 acres. I hunt my property but always with a non-resident license. I pay Oregon taxes, but I'm not a resident and I'm okay with that. If I stayed in Oregon long enough to be legally considered a resident and bought a resident license, I would no longer be a Alaska resident legally.
My take on the Montana case is that the Judge in Montana completely failed the legal residents of Montana in his sentencing of the non-resident aliens (assuming they do not have legal dual citizenship). If they are claiming Ontario residency and Canadian citizenship, then they have no legal business claiming Montana residency. The Montana court agreed that they are not residents or the case would have gone no further in the court.
To give retro-active suspension of their licenses is almost unheard of. The fines totaling far less than the value to the resource is a slap in the face to all legal hunters in Montana that pay the money to do it right. I agree with Jim, they should be in jail!