State Auditor James Brown Permanently Revokes License of Kalispell Bail Bondsman Accused of Using Position to Exploit Montanans, Including for Sexual Favors

The following information was released by the Montana Commissioner of Securities and Insurance:

State Auditor James Brown protected Montanans by permanently revoking the insurance producer license of Laine Kendall Callahan, a Kalispell bail bondsman accused of exploiting people under his supervision, including allegedly trading services for sexual favors.

Brown's office began investigating Callahan following a referral from the Montana Department of Justice. The investigation found that Callahan abused his authority as a surety bail bond producer in multiple ways, prompting Auditor Brown to suspend his license earlier this month, pending final revocation.

The Auditor's investigation revealed the Callahan allegedly compelled a witness to perform oral sex to "work off" what she purportedly owed him on a bond. Another witness alleged that Callahan had him perform informal, unlicensed work as a de facto bail agent to work off his debt on a bond.

Additionally, the investigation found that Callahan routinely took possession of vehicle titles as collateral for bail bonds without proper documentation, authorization, or timely return of titles after bond obligations were satisfied.

"Callahan's behavior not only violated Montana law, but it also eroded public trust in our justice system," Auditor Brown said. "My agency will investigate and prosecute any bad actor in the insurance industry, especially bail bondsman, who hold particular power over the Montanans in need of their help. That power comes with a heightened level of professional and moral responsibility."

Over a four-month period ending in March 2026, Callahan issued 133 bonds totaling over $1 million. Given the volume of business and serious concerns about Callahan's conduct spanning multiple years, Auditor Brown determined that Callahan's continued operations posed a significant and ongoing threat to the public.

In an interview with an investigator, Callahan initially denied ever using his position as a bail bondsman to request anything personal from a defendant, such as sexual acts. However, Callahan did not request a hearing to challenge Auditor Brown's proposed license revocation and the factual allegations outlined in the temporary license suspension order.

Auditor Brown has made oversight of the bail bond industry a priority, having already taken swift action in several cases to protect Montanans. Notably, a federal court recently sentenced a Billings bail bondsman, Louis Ikeda, to one year in prison and three years of supervised release, after a multiagency investigation initially led by Brown's office determined he leveraged his position for sexual favors from at least one female inmate.