By Nolan Mckendry | The Center Square
(The Center Square) — A former Louisiana managing attorney for a Texas law firm accused of defrauding hundreds of Hurricane Ida victims has been federally charged, more than three years after state insurance regulators first uncovered what they called one of the most egregious fraud schemes to come before the agency.
Federal prosecutors charged Richard William Huye III, 34, with conspiracy to commit wire fraud on Aug. 28. Huye, formerly of New Orleans and now living in Texas, faces up to five years in prison if convicted.
Although the federal charging document identifies Huye’s employer only as “Law Firm A,” Louisiana regulatory and court records identify Huye as the former Louisiana managing partner of McClenny Moseley & Associates, a Houston-based firm that came under intense scrutiny for its handling of hurricane insurance claims.
The allegations in the new federal case closely track those Louisiana insurance regulators leveled against MMA in 2023.
Prosecutors allege Huye and the law firm effectively claimed to represent hundreds of Louisiana homeowners without their knowledge or permission after Hurricane Ida.
The scheme allegedly began when an Alabama roofing company signed homeowners to agreements giving it rights to their insurance claims. The roofing company then sent those claims to Huye’s law firm.
But instead of telling insurance companies that it was working on behalf of the roofing company, prosecutors say Huye and the firm told insurers they represented the homeowners themselves.
That allowed the firm to negotiate and settle homeowners’ insurance claims while allegedly hiding its true relationship with the roofing company.
Prosecutors say some homeowners never received money that was supposed to pay for roof repairs, while others received less because the law firm deducted attorney fees and expenses they had not authorized.
In some cases, prosecutors allege a managing partner of the firm signed homeowners’ names on settlement checks without permission and deposited the insurance money into the law firm’s bank account.
Federal prosecutors say the firm sent at least 856 false or misleading letters to insurance companies as part of the alleged scheme.
The charging document describes eight Louisiana homeowners whose claims were allegedly affected. Prosecutors say most either did not receive money intended to repair their roofs or had their payments reduced by unauthorized attorney fees and expenses.
Then-Insurance Commissioner Jim Donelon announced $2 million in fines against MMA, Huye and founding partners James McClenny and John Moseley in May 2023. Each received the maximum $500,000 penalty after the Louisiana Department of Insurance said its investigation found at least 856 fraudulent representations involving more than 850 Louisiana homeowners.
“The illegal insurance scheme perpetrated by McClenny Moseley & Associates is frankly one of the most egregious cases that has ever come through this department,” Donelon said at the time.
The consequences spread beyond the insurance department.
The Louisiana Supreme Court suspended Huye from practicing law on an interim basis in March 2023 and ordered him to produce a list of MMA’s Louisiana clients associated with hurricanes Laura, Delta and Ida. Two months later, the court stayed MMA’s hurricane and storm litigation throughout Louisiana.
A special trustee was eventually appointed to identify MMA’s former clients, determine whether they had obtained new lawyers and help return their case files. Louisiana Supreme Court records say MMA had entered contingency-fee contracts with thousands of Louisiana residents after Hurricane Ida. The firm subsequently filed for bankruptcy protection in 2024.
But Louisiana’s attempt to punish the firm through insurance regulation suffered a major setback last year.
In January 2025, the Louisiana Division of Administrative Law ruled that the Department of Insurance lacked subject-matter jurisdiction to issue its cease-and-desist orders and fines against MMA and its leadership.
Insurance Commissioner Tim Temple publicly rejected that conclusion.
“The LDI had authority to investigate and issue administrative actions against MMA in 2023 for committing fraud in the insurance claim process,” Temple said. “I respect the judge, but I disagree with her ruling in this case.”
Temple added that he would work with and encourage the Louisiana Department of Justice “to pursue MMA for its criminal activities.”
The new federal charge represents a separate criminal proceeding and does not revive the administrative penalties.
It also potentially opens another chapter in the investigation. The bill of information repeatedly describes an unidentified managing partner as a co-conspirator but does not indicate whether prosecutors intend to charge anyone else.