Former Louisiana Citizens executive pleads guilty to theft charge

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The former chief executive officer of Louisiana Citizens Property Insurance Corp. pleaded guilty to using money from several state-run insurance companies’ expense account for personal uses, which could net him up to 30 months in state prison.

Terry Lisotta pleaded guilty to one count of theft from Citizens and related insurance companies from 2003 to 2006, according to The Times-Picayune.

The plea came as Lisotta was about to go on trial for 14 counts of theft by fraud for personal uses, including use of money for a prom party for his daughter, spa treatments, and vacations.

Lisotta admitted to using money from Citizens, a property insurer; the Louisiana Automobile Insurance Program, a state program for high-risk drivers; and the Property Insurance Association of Louisiana, which previously operated the prior two insurance firms, according to the report. Lisotta served as CEO of all three at various times and had access to credit cards and expense accounts at each position, the report said.

He is scheduled for sentencing April 23 and Lisotta was told he will be spending 2 ½ years in state prison.

Lisotta was charged after a legislative audit found he accumulated more than $285,000 in questionable expenses between 2003 and 2006. Fourteen theft charges were rolled into one theft charge by prosecutors as part of the plea deal.

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