STATE AUDITOR JAMES BROWN PROTECTS PUBLIC SAFETY BY SUSPENDING LICENSE OF KALISPELL BAIL BONDSMAN ACCUSED OF EXPLOITING PEOPLE UNDER HIS SUPERVISION, TRADING SERVICES FOR SEXUAL FAVORS

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

State Auditor James Brown acted in the interest of public safety by suspending the insurance producer license of a Kalispell bail bondsman accused of exploiting people under his supervision, including trading his services for sexual favors.

In January 2026, Auditor Brown received a referral from the Montana Department of Justice involving allegations that Laine Kendall Callahan was abusing his authority as a surety bail bond producer. As the head of the Office of the Commissioner of Securities and Insurance (CSI), which regulates bail bondsman as licensed insurance producers, Auditor Brown immediately opened an investigation into Callahan's conduct.

The investigation revealed that Callahan allegedly compelled a witness to perform oral sex to "work off" what she owed him on a bond. The witness stated that she only complied because she believed refusing would result in the revocation of her bond; Callahan "held [her] life in his hands," according to the witness.

Another witness alleged that Callahan had him perform informal, unlicensed work as a de facto bail agent to work off the debt he owed on a bond. This witness also claimed that he received monetary kickbacks from Callahan to promote the bail bond service inside the jail, having allegedly referred more than 300 people to Callahan.

Additionally, CSI's 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.

"After a thorough investigation, I acted swiftly to protect the public by halting Callahan's ability to continue operating as a bail bondsman in Montana, pending the completion of a revocation hearing if one is requested," Auditor Brown said. "When a bail bondsman fails to comply with the requirements of Montana's laws and regulations, the public loses trust in our justice system. As the leader of a criminal justice agency, I have a responsibility to protect Montanans from bad actors."

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, CSI determined that Callahan's continued operations posed a significant and ongoing threat to the public.

Callahan used "fraudulent, coercive, or dishonest practices; he was incompetent and untrustworthy; and he was a source of injury and loss to the public," Brown's license suspension order stated.

In an interview with a CSI investigator, Callahan denied ever using his position as a bail bondsman to request anything personal from a defendant, such as sexual acts. Callahan can request a hearing to challenge the license revocation within 21 days of receiving the order of suspension.

CSI appreciates the interagency cooperation involved with this ongoing case. Montanans are made safer by law enforcement partnerships like that between CSI and the Montana Department of Justice, including a close working relationship with Montana Attorney General Austin Knudsen.