Former Head of Louisiana Citizens Set for Trial in March

Terry Lisotta, former chief executive of Louisiana Citizens Property Insurance Corp., has a trial date for March 22 in state district court in Baton Rouge, La.

Lisotta was indicted early last December on 14 counts of theft for alleged misappropriations he made during his time as head of Citizens, the Property Insurance Association of Louisiana and the Louisiana Automobile Insurance Plan. Lisotta, fired from his post in 2007, faces up to 10 years in prison on each count handed up in Louisiana District Court.

According to records, District Court Judge Richard Anderson set the trial date after denying a request by Lisotta's attorneys to move the case to Jefferson Parish, where Citizens is located.

Two recent legislative audits of Citizens questioned the validity of $285,000 Lisotta claimed in expenses. Lisotta is alleged to have spent public money on golf outings and equipment; quail-hunting trips; beer, meat and other supplies for his daughter's prom party; Louisiana State University football tickets; and hotel stays for family in Bermuda, New York and for his daughters for Mardi Gras, according to the indictment (BestWire, Dec. 5, 2008).

Legislative Auditor Steve Theriot questioned about $106,579 of $285,249 in expenses reported by Lisotta from December 2003 to December 2006. "These are expenses that may not have been incurred, appear personal in nature, or appear to have no legitimate business purpose," the audit said.

John Wortman, chief executive of Citizens, said changes were made following the auditor's original report in September 2007, which found more than $1 million in possible misappropriations from the three state agencies. Wortman said company-issued credit cards were eliminated, and house accounts at restaurants were closed. Purchasing alcohol with company money is now prohibited, and office parties were discontinued, he said. Receipts are required for purchases above $25, and explanations are required.