Montana's State Auditor James Brown on Tuesday announced that he's suspending the insurance producer license of a bail bondsman based in Kalispell due to allegations that he exploited customers, including trading his services for sexual favors.
The bondsman, Laine Kendall Callahan, has denied that he ever used his position to request anything personal such as sexual acts.
In January 2026, an investigation conducted by the Montana Department of Justice found that Callahan had allegedly compelled a woman to perform oral sex to pay off what she owed him on a bond.
The witness told investigators that she only complied because she believed refusing would result in the revocation of her bond. The woman told investigators that Callahan "held her life in his hands."
Another witness interviewed by investigators said that he performed informal, unlicensed work as a de facto bail agent to work off the debt he owed on a bond. He also claimed he received monetary kickbacks from Callahan to promote the bail bond service inside the jail. Allegedly, he referred over 300 people to Callahan.
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.
“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,” 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.”
His office determined that over a four-month period earlier this year, Callahan issued 133 bonds totaling over $1 million.
"Given the volume of business and serious concerns about Callahan’s conduct spanning multiple years, the Office of Commissioner of Securities and Insurance determined that Callahan’s continued operations posed a significant and ongoing threat to the public," said a press release from Brown's office.
The license suspension order stated that Callahan used "fraudulent, coercive or dishonest practices, he was incompetent and untrustworthy and he was a source of injury and loss to the public."
Callahan works for a company called Affordable Bail Bonds and Monitoring.
He did not return a request for comment via email and phone call on Wednesday.
Brown's press release noted that Callahan denied the allegations.
"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," the press release stated. "Callahan can request a hearing to challenge the license revocation within 21 days of receiving the order of suspension."
Earlier this year, Brown's office suspended the Montana operating license of a company called Mr. Bail, based in Billings. The company was under investigation for incidents involving bond agents operating without a proper license. According to court documents, in Missoula, a man was shot dead by a bondsman allegedly working for Mr. Bail in March.
One of the bondsmen, Brandon Wakefield, has been charged with felony deliberate homicide in Missoula County District Court, and another bondsmen, Austin Mistretta, was charged with attempted assault with a weapon.