NEW ORLEANS — Richard William Huye III is charged with one count of conspiracy to commit wire fraud in connection with a post-Hurricane Ida insurance claims scheme. The federal charge carries a maximum penalty of five years in prison and a fine of approximately $250,000.

Most Louisiana homeowners’ insurance policies contained provisions restricting assignment of benefits or requiring insurers’ approval, according to prosecutors. Despite these restrictions, prosecutors allege that Apex persuaded hundreds of homeowners to sign over their insurance claims and sent them to McClenny Moseley and Associates. In some instances, prosecutors allege that Apex signed legal agreements on behalf of homeowners without their knowledge.

Prosecutors allege that Richard William Huye III and McClenny Moseley and Associates sent letters to hundreds of insurance companies claiming exclusive representation of homeowners. These letters failed to disclose that clients had signed over their claims to Apex. The bill of information against Huye focuses on eight Louisiana homeowners whose property damage claims were affected by the alleged scheme. Most of the eight homeowners identified in the charges either did not receive money meant for roof repairs or had funds reduced after unauthorized attorneys’ fees and expenses were withheld, according to prosecutors.

The bill of information refers to an unnamed MMA associate as 'co-conspirator 1'. Louisiana federal judges and the state insurance department determined that McClenny Moseley and Associates used an online advertising agency named Velawcity to sign up thousands of storm victims. Louisiana’s legal ethics code forbids paying non-attorneys to sign up clients. As a result of these findings, McClenny Moseley and Associates was forced to forfeit its clients.

State regulators also imposed professional sanctions on the involved parties. Louisiana disbarred Richard William Huye III from practicing law in the state. Louisiana’s insurance commissioner imposed $2 million in fines on Richard William Huye III, Zach Moseley, and McClenny Moseley and Associates. The firm filed for federal bankruptcy protection in Houston in 2024.

Timeline

McClenny Moseley and Associates filed for federal bankruptcy protection in Houston in 2024. In July, the Louisiana Supreme Court ruled that McClenny Moseley and Associates could not collect fees from law firms that took over its clients’ cases if the clients were illicitly or unethically signed up. Richard William Huye III is charged with one count of conspiracy to commit wire fraud on August 28, 2024.

The bill of information refers to an unnamed MMA associate as 'co-conspirator 1' on August 28, 2024. Richard William Huye III is scheduled to appear at an arraignment and a rearraignment hearing on 28 September in federal court in New Orleans.

What's New

Yes, the defendant, Richard William Huye III, was covered in previous reports, including articles which detailed his charges and involvement in the Hurricane Ida insurance fraud scheme.

Why It Matters

The events described span 3 years, from 2021 to 2024, involving a scheme that prosecutors allege misled insurers and homeowners to control claims. Federal Prosecutors allege the firm misled insurers and homeowners to control claims, while Louisiana Insurance Commissioner and Supreme Court actions resulted in fines and professional sanctions on the involved parties.