COVINGTON, La. -- Former Citizens Insurance CEO Terry Lisotta pleaded guilty Monday to felony theft by fraud.
As part of a plea agreement, Lisotta will serve a 30 month sentence. By Louisiana standards, he must serve at least a third of that, 10 months, in a State Department of Corrections facility.
"Mr. Lisotta today made the difficult decision to plead guilty, as he deemed it in his best interest, but more importantly, in the best interest of his family," Lisotta's attorney David Courcelle said minutes after entering their plea.
"It was just flat out theft," Assistant Attorney General David Caldwell told Eyewitness News Monday morning in Baton Rouge. "Double dipping."
The state's case against Terry Lisotta grew directly out of a State Legislative Auditor's report, and included 14 separate incidents where the state alleged Lisotta used public money to pay for an array of personal expenses which had no legitimate business purpose.
Lisotta apologized in court, then again to reporters outside. "I'd like to apologize again to the people of Louisiana," Lisotta said. "I accept with remorse the decision to plead guilty and the sentencing which they've given me."
Lisotta's attorney and prosecutors agreed to on the plea deal as the jury trial was getting ready to begin. "That really was the sticking point was that we just felt like he had to own up to what he did in its entirety," Caldwell said.
The 14 incidents made up 14 separate charges, but for the purpose of Lisotta's guilty plea, were lumped into one count. "One of the counts for example was a conference that he did attend, but he was comped the registration fee," Caldwell added. "He then turned around and billed that fee, $1,500, to the company and pocketed the cash."
According to the attorney general, the people of Louisiana also picked up the tab for Terry Lisotta's hunting trips, greens fees, spa treatments and a first class ticket to Europe. Plus, he charged $504 for plane tickets for his daughter to go to New York, and $1,102.75 of party supplies like beer and paper plates for his daughter's prom party.
"He has accepted responsibility for his actions," Courcelle told reporters. "He's remorseful, and he's pled guilty."
Rafael Goyeneche of the Metropolitan Crime Commission called the two and a half year sentence, "a substantial sentence".
"In a case where someone has stolen under six figures in a white collar case, it's very unusual in state court for someone to get actual jail time," Caldwell said. "A lot of times with a first offender who has never been arrested, they get probation. So, I think, this sentence sends a very strong message that there's a new day."
Lisotta's official sentencing is now scheduled for April 23, where Judge Richard Anderson is expected hand down that 30 month sentence.
