Billings Man Sentenced for Bank Fraud

A federal judge sentenced a Billings bank employee to eight months in prison for a fraudulent loan scheme.

Updated on Oct. 28, 2026 in Financial Crime

Live Poll

Do you trust that banks have sufficient safeguards to prevent internal fraud by their employees?

A federal court sentenced a Billings man to eight months in prison after he pleaded guilty to one count of bank fraud. The defendant utilized his role as a commercial relationship manager to falsify a loan application.

Why it matters

The case highlights the severity of internal fraud within financial institutions and the legal consequences for employees who exploit their positions for personal gain.

Jordan Hennessy received an eight-month prison sentence followed by two years of supervised release for bank fraud. The court ordered him to pay $49,997.94 in restitution after he pleaded guilty to the offense.

The players

Jordan Hennessy

The 38-year-old Billings resident served as a commercial relationship manager for First Interstate Bank.

First Interstate Bank

A financial institution where the defendant was employed as a commercial relationship manager.

The details

Jordan Hennessy, while employed as a commercial relationship manager for First Interstate Bank, submitted a $100,000 loan application under the name of Stillwater Group, LLC. He leveraged his position to negotiate the loan with himself, successfully obtaining $50,000 through the falsified application.

March 11, 2022: Hennessy submitted the fraudulent loan application.
June 2026: Hennessy pleaded guilty to the charge of bank fraud.
October 28, 2026: The federal court sentenced Hennessy to eight months in prison.

Legal Context

This case follows standard federal sentencing guidelines for financial crimes where employees exploit their positions of trust for illicit gain. It mirrors recent efforts by authorities in Montana to crack down on internal fraud within regional banking institutions.

The conviction serves as a reminder of the security protocols enforced within local banking branches to protect community deposits. Residents should note that the court has ordered full restitution to address the financial impact of the fraud.

The takeaway

Maintaining strict internal controls is essential for banks to prevent employees from abusing their access to loan platforms. Individuals can protect their own interests by monitoring their accounts and reporting any suspicious activity to their financial institution immediately.