Montana Auditor Suspends Producer License of Bail Bondsman Accused of Exploitation

Montana State Auditor James Brown suspended the insurance producer license of a bail bondsman accused of exploiting people under his supervision, including trading services for sex and allegedly taking possession of vehicle titles without proper documentation, authorization or timely return of titles after bond obligations were satisfied.

Brown received a referral from the Montana Department of Justice alleging Laine Kendall Callahan was abusing his authority as a surety bail bond producer. The Office of the Commissioner of Securities and Insurance regulates bail bondsman as licensed insurance producers, and Brown opened an investigation.

The investigation showed Callahan allegedly compelled a witness to perform oral sex to “work off” what she owed him on a bond. The witness stated she believed Callahan held her “life in his hands.”

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 jail.

Over a four-month period ending in March, Callahan issued 133 bonds totaling more than $1 million.

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