Tag: Terry Lisotta

Jim Brown on Louisiana Citizen

Jim was kind enough to share this week’s column with us including fresh rumors from the Louisiana Department of Insurance that explains why they did not cooperate with the investigation that lead to the indictment of Citizens former CEO Terry Lisotta.  – sop

Thursday, December 11th, 2008

Baton Rouge, Louisiana 

LOUISIANA CITIZENS INSURANCE SCANDALS CONTINUE TO GROW

A year ago, it would have been hard to imagine that conditions at Citizens Property Insurance Company could get any worse. The state created and state run company was in debt by over $1 billion. The Rouge Business Report called Citizens the biggest financial disaster in the state’s history. But never underestimate the ability of some state agencies to make a dysfunctional situation go from bad to worse. The Board governing Citizens, that includes statewide elected officials, has shown little oversight of the Companies’ spending and management decisions, sparking not only criticism from the Legislative Auditor in Louisiana, but also provoking major investigations by both state and federal law-enforcement agencies.

The latest Citizens scandal boiled over last week when the former CEO was indicted with 14 counts of theft by fraud, filled with allegations that he spent more than $285,000 on questionable expenses including airline tickets, meals, retirement gifts and stays at lavish hotels. But his attorney said last week that his client is being singled out and “used as a scapegoat” in the poor management of the insurance company. Sources close to the investigation seemed to agree, saying that the latest indictments are just “the tip of the iceberg.”

The whole controversy has significantly elevated due to the resistance of Louisiana’s Insurance Commissioner to turning over some 2000 e-mails requested by the Legislative Auditor’s office. Continue reading “Jim Brown on Louisiana Citizen”

Breaking News: Former CEO of Louisiana Citizens Insurance Indicted

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. Continue reading “Breaking News: Former CEO of Louisiana Citizens Insurance Indicted”

Let the Policyholders Foot the Prom Bill: Crooks in Gucci Suits Louisiana Edition (Oh Yeah, Terry Lisotta Welcome to Slabbed)

Louisiana Citizens is high priced insurance and the gift that keeps on giving if you are Terry Lisotta:  Legislative Auditor Steve Theriot was not amused:

The former head of Louisiana’s state-run homeowners property insurance program reported more than $285,000 in expenses from December 2003 to December 2006, including $106,579 in questionable spending for trips and possibly his daughter’s prom party, Legislative Auditor Steve Theriot said Monday.

In a 30-page audit, Theriot said that Terry Lisotta, who stepped down as head of the Louisiana Citizens Property Insurance Corp. last year, rang up $52,247 for entertainment and travel “that appear both unnecessary and extravagant.”

The report said that Lisotta was reimbursed more than $19,162 for expenses he apparently did not incur and manufactured receipts to make them look legitimate.

The audit identified almost $48,000 of “questionable costs,” including a March 19, 2004 expenditure of $1,290.62 from a Sam’s Club in New Orleans for beer, chips, soft drinks, meats and other items. The audit said that there is no “documented public purpose for this expense.”

The audit said that Lisotta’s calendar indicated a “dance party for his daughter’s prom” Continue reading “Let the Policyholders Foot the Prom Bill: Crooks in Gucci Suits Louisiana Edition (Oh Yeah, Terry Lisotta Welcome to Slabbed)”