Montana’s state auditor has permanently revoked the insurance producer license of a Kalispell bail bondsman accused of exploiting people under his supervision, including allegedly demanding sexual favors in exchange for reducing debts owed on bail bonds.
State Auditor James Brown’s office opened an investigation into Laine Kendall Callahan following a referral from the Montana Department of Justice. The inquiry found that Callahan had abused his authority as a surety bail bond producer in multiple ways, prompting Brown to suspend his license earlier this month pending a final revocation decision.
According to the investigation, one witness alleged that Callahan compelled her to perform oral sex to “work off” money she purportedly owed him on a bond. A second witness alleged that Callahan had him perform informal, unlicensed work as a de facto bail agent to offset his own debt.
Investigators also found that Callahan routinely took possession of vehicle titles as collateral for bail bonds without proper documentation or authorization, and failed to return titles in a timely manner after bond obligations were satisfied.
“Callahan’s behavior not only violated Montana law, but it also eroded public trust in our justice system,” Brown said. “My agency will investigate and prosecute any bad actor in the insurance industry, especially bail bondsmen, 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 more than $1 million, according to the auditor’s office. Citing the volume of his business and the severity of the allegations, which span multiple years, Brown determined that Callahan’s continued operation posed a significant and ongoing threat to the public.
In an interview with an investigator, Callahan initially denied ever using his position to request anything personal from a defendant, including sexual acts. He did not request a hearing to challenge the proposed revocation or the factual findings in the temporary suspension order.
The action is the latest in a series of steps Brown’s office has taken to increase oversight of Montana’s bail bond industry. In a separate case, a federal court recently sentenced 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, found that he had leveraged his position to obtain sexual favors from at least one female inmate.