Former CEO of Louisiana citizens pleaded not guilty to theft

 

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2 February 2009 Monday 04:22 PM EST

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Former CEO of Louisiana citizens pleaded not guilty to theft charges

Chad Hemenway

BATON ROUGE, La.



Former Louisiana Citizens Property Insurance Corp. Chief Executive Terry Lisotta pleaded not guilty to 14 counts of theft for embezzlement he made during his time as head of state insurance.

Lisotta's lawyer, David Courcelle, said Lisotta fact be the 2 February and at the same time, Courcelle has filed several motions involved in the discovery phase - an exchange of information.

"We have received nothing from the state yet," said Courcelle. "This is a document case. I do not know how long will the discovery."

All other proposals must be submitted by March 25, said Courcelle, who said Lisotta is innocent of the charges and became a "scapegoat" for the people has problems with its operation.

Two recent legislative audits of citizens questioned the validity of about $ 285,000 Lisotta claimed expenses of December 2003 to December 2006 (BestWire, Dec. 5, 2008). Lisotta is accused of spending public money on golf outings and equipment; quail-hunting, beer, meat and other supplies for her daughter prom party; Louisiana State University football tickets and trips a hotel for the family in Bermuda, New York and his daughters for Mardi Gras, according to the indictment, including the names of certain sections of the audit.

The indictment handed over to the District Court of Louisiana in December is based on allegations of waste of Lisotta approximately $ 30,000. Lisotta, executive officer of the insurer of last resort until he was fired in 2007, faced with 10 years in prison for each count, tens of thousands of dollars in fines and could be ordered to pay restitution.

John Wortman, chief executive of Citizens, said that changes were made after the original auditor's report in September 2007 that found more than $ 1 million in possible misuse of citizens, insurance property of the Association and the Louisiana Insurance Automobile Louisiana. Wortman said the company issued credit cards were eliminated, and accounts of the House in the restaurants were closed. The purchase of alcohol at the company money is now prohibited, and office parties have been abandoned, he said. Receipts are required for purchases over $ 25, and explanations are necessary.

The Louisiana Office of the Attorney General said he had been in contact with federal authorities regarding the alleged embezzlement Lisotta.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway @ ambest.com)

3 February 2009

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