LSFA

A state grand jury in East Baton Rouge Parish indicted the former Manager of the Property Insurance Association (PIAL) and chief executive officer of the state-operated Louisiana Citizens Property Insurance Corporation on 14 counts of theft following a year-long investigation by the Attorney General's office.

 The grand jury returned the indictment against Terry Lisotta, who was criticized in two (2) 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, PIAL and the Louisiana Automobile Insurance Plan.

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 La 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 a $1,100 prom party for Lisotta's 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, Florida 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 (PIAL), which until recently oversaw La Citizens the La Automobile Plan.

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.  The PIAL board now has Louisiana Fire Service representation, one member from the La State Firemen's Association (LSFA) and another form the La Fire Chief's Association.

Sources:  http://www.wafb.com/  & http://www.nola.com/news/index.ssf/2008/12/former_citizens_insurance_exec.html