The Times Picayune is reporting the indictment of Terry Lisotta, former CEO of Louisiana’s state-operated insurance program.
Politics and law have a special relationship in Louisiana; so, I’ve linked a few background stories from former Louisiana Insurance Commissioner Jim Brown’s site below the lead story for those who would like to know more.
A state grand jury today indicted the former chief executive officer of the state-operated Louisiana Citizens Property Insurance Corp. on 14 counts of theft following a year-long investigation by Attorney General Buddy Caldwell’s office.
The grand jury returned the indictment against Terry Lisotta, who was criticized in two audits during the past 15 months by Legislative Auditor Steve Theriot’s office for ringing up more than $285,000 in expenses between 2003 and 2006 and charging the expenses to Citizens or two other state-related insurance entities.
Assistant Attorney General David Caldwell, the attorney general’s son and director of the public corruption and special prosecutions section of the office, did not rule out more indictments and said the investigations are ongoing.
Each charge against Lisotta is punishable by up to 10 years in prison, monetary fines and restitution. Since Citizens operated offices in Metairie and Baton Rouge, David Caldwell said East Baton Rouge Parish District Attorney Doug Moreau and Jefferson Parish District Attorney Paul Connick also cooperated in the probe.
“We have been in discussions” with federal authorities, also, about possible federal charges, David Caldwell said.
The audits said that $106,500 of the expenses may have been paid twice, were non-existent or questionable, such as an $1,100 prom party for his daughter, football tickets, golf outings and meals and trips. In one instance, auditors said, Lisotta paid about $1,700 to stay at a trendy Sandestin, Fla., hotel from May 25-27, 2006 to attend a reinsurance association convention — but the group did not meet at that time.
The audit said he also gave instructions to hotel staff not to let “anyone know he’s here.”
Lisotta’s expenses were approved by members of the board of Citizens, the state’s homeowners insurer of last resort; the Louisiana Automobile Insurance Plan, the state’s high-risk auto pool; and the Property Insurance Association of Louisiana, the company that until recently oversaw the two others.
The three entities had overlapping memberships and would parcel out Lisotta’s expenses to each of the agencies.
There have been changes in the way the three companies operate and their boards are now more independent.
Audit targets expense reports November 11
The most recent state audit of Louisiana Citizens Property Insurance Corp. questions $106,579 in expenses turned in by the company’s former chief executive officer.
“These are expenses that may not have been incurred, appear personal in nature, or appear to have no legitimate business purpose,” the state legislative auditor says in the report.
An earlier audit examined roughly 10 percent of the $285,249 in expenses turned in by former Citizens Chief Executive Officer Terry Lisotta, said Dan Daigle, assistant legislative auditor for the Compliance Audit Division of the state Legislative Auditor’s Office.
The more thorough exam turned up “a few more schemes here and there,” but basically more of the same abuses, Daigle said.
Goodwill wasted on ex-insurance chief November 14, 2008
Terry Lisotta must have figured he had everyone fooled.
Lisotta, as head of the public corporation that insures property owners spurned by the commercial market, fiddled his expenses to the tune of more than $100,000 in three years, according to a report from Legislative Auditor Steve Theriot.
This must have come as a shock to State Insurance Commissioner Jim Donelon, who in January of last year called Lisotta “a good person and an extremely hard worker.”…
Audit attacks Citizens rate cuts November 18
The state Department of Insurance made “improper adjustments” to rate increases submitted by Louisiana Citizens Property Insurance Corp. in 2006, resulting in lower premiums that may have violated state law and put state taxpayers at risk in the event of a catastrophe, according to an audit released Monday.
Insurance Commissioner Jim Donelon disputed the findings.
Auditor access to data draw separate lawsuit November 18
The on-again off-again legal battle between Insurance Commissioner Jim Donelon and Legislative Auditor Steve Theriot is on again.
The two are going back to court eight months after announcing they had settled their dispute over access to Insurance Department records involving the state-run insurer of last resort: Louisiana Citizens Property Insurance Corp.