Auditor revokes bail bondsman’s license permanently 

State Auditor James Brown permanently revoked the license of Laine Kendall Callahan, a bail bondsman of Kalispell accused of trading services for sexual favors, the auditor announced in a news release.

The news release said Callahan initially denied receiving sexual acts in exchange for services, but he did not dispute the suspension order.

Brown suspended Callahan’s license early last month after an investigation found he abused his authority as a bail bond producer “in multiple ways.”

The news release said a federal court recently sentenced a Billings bail bondsman following a multiagency investigation initially led by Brown that found the bondsman leveraged his position for sexual favors from at least one female inmate.

The auditor said early last month he intended to seek permanent revocation of Callahan’s license, and it said Callahan could challenge the proposed revocation.

But Callahan did not dispute the factual allegations outlined in the temporary suspension order, nor did he challenge the proposed revocation, said the news release announcing the permanent order.

Callahan did not respond to the Daily Montanan’s questions Tuesday or last month about the allegations.

Brown said his office began investigating Callahan after a referral from the Department of Justice, and the investigation found the following problems:

• Callahan allegedly compelled a witness to perform oral sex to “work off” what she purportedly owed him;
• A different witness alleged that he had him do unlicensed work as “a de facto bail agent” to work off his debt on a bond; and
• Callahan routinely took possession of vehicle titles as collateral for bail bonds without proper documentation.

Brown said because of the volume of business Callahan conducted, he determined his operations posed a threat to the public. The news release said Callahan had issued 133 bonds totaling more than $1 million in just four months.

“Callahan’s behavior not only violated Montana law, but it also eroded public trust in our justice system,” Brown said in a statement. “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.”