Billings Banker Gets 8 Months in Prison for Approving His Own $50K Loan

When you sit down at a Billings bank to ask about a loan, you’re trusting that the person across the desk is playing by the rules. A federal court sentenced a man who worked at First Interstate Bank on Wednesday after he used that trust to take care of himself.

Billings Man Sentenced to Eight Months in Federal Prison

Jordan Hennessy, 38, was sentenced to eight months in prison. He will then serve two years of supervised release. He was also ordered to pay $49,997.94 in restitution, according to U.S. Attorney Scott Twito’s office.

Hennessy pleaded guilty in June 2026 to one count of bank fraud. U.S. District Judge Kathleen S. Lane presided over the case.

Billings Bank Manager Negotiated a Loan With Himself

Hennessy was the commercial relationship manager for First Interstate Bank in Billings. Prosecutors say that on March 11, 2022, he submitted a commercial loan application for $100,000 under the name of his father’s business, Stillwater Group, LLC. The application stated the money would go toward real estate projects in Montana.

He then opened a checking account and named his father as a joint owner.

Hennessy negotiated the counteroffer on his own loan request. That put him on both sides of the deal, and the “negotiation” was with himself. It ended with a $50,000 line of credit issued to Stillwater Group.

Hennessy moved the money from the Stillwater Group account into his personal checking account. He later defaulted on the line of credit.

Federal Agents Say Billings Bank Insiders Will Be Held Accountable

Two federal investigators commented on the sentencing. John T. Perez, Special Agent in Charge, Headquarters Operations, for the Office of Inspector General for the Federal Reserve System and the Consumer Financial Protection Bureau, said Hennessy “abused his bank position to commit fraud for his own benefit.”

Special Agent in Charge Justin R. Bundy of the FDIC Office of Inspector General said the sentencing reminds bank insiders who abuse trusted positions that they will be held accountable.

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Assistant U.S. Attorney Colin Rubich prosecuted the case. The FDIC OIG and the OIG for the Federal Reserve and the Consumer Financial Protection Bureau conducted the investigation.