The former chief of Louisiana’s state-backed insurance company has pleaded not guilty in a criminal case that accuses him of fraudulently spending the firm’s money for personal travel and entertainment.
Terry Lisotta was arraigned Feb. 2 in Baton Rouge on 14 counts of theft. Lisotta, CEO of Louisiana Citizens Property Insurance Corp. until April 2007, is accused of improperly spending about $30,000 of the firm’s money.
The criminal charges stem from an investigation by the Legislative Auditor’s Office that questioned $106,000 of Lisotta’s expense reports from 2003-2006. State Attorney General Buddy Caldwell’s office is prosecuting.
Lisotta’s lawyer, David Courcelle, said Lisotta will fight the charges. He submitted court motions to get all documents under review by prosecutors with the Attorney General’s office.
Assistant Attorney General David Caldwell and Courcelle both said a plea bargain deal is possible, but not in the works now.
Lisotta is accused of submitting fictional expense accounts and getting reimbursed $3,321 for insurance conferences he did not attend or did not pay for. One count accuses Lisotta of getting $1,495 in Citizens reimbursements for fees to attend the Property-Casualty Industry’s conference in New York – though investigators say Lisotta, as a guest speaker, wasn’t charged the fee.
Lisotta’s lawyer, David Courcelle, has said Lisotta is innocent. Courcelle said Lisotta’s spending occurred with approval and knowledge of the governing boards of Citizens and two other firms he worked for: Louisiana Automobile Insurance Plan, the state’s high-risk auto pool, and the Property Insurance Association of Louisiana, which managed Citizens and LAIP.
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