State auditor suspends Kalispell bail bondsman

State Auditor James Brown suspended the license of a Kalispell bail bondsman after an investigation found evidence the bondsman traded services for sexual favors and exploited people in other ways.

Signed on Monday, the suspension order said bail bondsman Laine Kendall Callahan disputed the allegation he used his position in exchange for personal favors including sexual acts.

Callahan could not be reached for comment by email Wednesday about whether he plans to contest the suspension.

The Auditor’s Office also could not be reached about whether it received a request for a hearing from Callahan, who has 21 days from Aug. 3 to challenge the suspension.

However, in the order, Brown said he plans to seek full and permanent license revocation because the bondsman’s operations “pose a substantial and ongoing risk of harm to the public.”

The order said Callahan issued 133 bonds for more than $1 million in a four-month period ending March 2026, and the volume of business and concerns about his conduct span multiple years.

A news release from the Auditor’s Office outlined the following allegations:

• Callahan compelled a witness to perform oral sex to “work off” what she owed him on a bond, and the witness complied because she believed her bond would be revoked if she didn’t.
• Callahan had another witness perform unlicensed work as a bail agent to work off debt he owed on a bond; the witness alleged he received monetary kickbacks to promote Callahan’s services inside the jail, having referred more than 300 people.
• 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.

The suspension order said Callahan admitted he collected less than 10% on bonds at times and entered into payment plans for them. It said he also admitted he doesn’t separate client funds from his personal and business funds.

In a statement, Brown, commissioner of securities and insurance, said he acted swiftly to protect the public.

“When a bail bondsman fails to comply with the requirements of Montana’s laws and regulations, the public loses trust in our justice system,” Brown said.

The news release said victims of a scam or fraud as well as their advocates can reach out to the agency for assistance at (406) 444-2040 and sign up for commissioner of securities and insurance advisories at csimt.gov.