The short version
- Richard William Huye III, an attorney with McClenny Moseley and Associates, has been charged with conspiracy to commit wire fraud in connection with Hurricane Ida recovery efforts.
- Prosecutors allege the firm used unauthorized assignment of benefits forms and false legal representations to divert insurance payouts intended for homeowners.
- The charges mark the first criminal result of a broader investigation into the law firm's practices, which involved partnering with roofing companies and online advertising agencies.
Federal prosecutors have filed criminal charges against Richard William Huye III, marking the first legal action stemming from a lengthy investigation into one of Louisiana’s largest home insurance fraud schemes. The thirty-four-year-old attorney, who worked for McClenny Moseley and Associates, faces a count of conspiracy to commit wire fraud. The bill of information was filed in federal court in New Orleans on Friday, targeting Huye’s role in orchestrating deceptive practices that allegedly harmed thousands of homeowners recovering from Hurricane Ida and other severe storms.
The allegations center on the period immediately following the arrival of Category 4 Hurricane Ida in late August 2021. According to court documents, Huye began working for the Texas-based law firm just three days after the storm struck southeast Louisiana. He subsequently opened a New Orleans office in October of that year. Prosecutors state that during this time, the firm encouraged Apex Roofing, an Alabama-based company, to expand its operations into Louisiana. This partnership formed the backbone of the alleged scheme, which relied on manipulating insurance claims processes.
Central to the fraud was the misuse of assignment of benefits forms. The law firm allegedly advised Apex Roofing that it could use these documents to seek direct payment from homeowners’ insurance companies without restriction. However, most Louisiana homeowner policies contain language that prohibits such assignments or requires prior approval. Despite this, Apex reportedly signed up hundreds of homeowners using these forms and sent them to the law firm for handling. The firm then allegedly instructed the roofing company to sign legal services retention contracts on behalf of the homeowners without their knowledge or authorization.
Huye is accused of electronically transmitting false and misleading letters of representation to insurance companies. These documents claimed that he and his firm represented only the insured parties, while deliberately omitting any disclosure of their role in the roofing company’s assignments of benefits. Prosecutors allege that this deception extended to other communications, mediations, and court filings, where no mention of the roofing company’s involvement was made. This pattern of concealment allowed the firm to position itself as the sole advocate for homeowners while secretly facilitating payments to third-party contractors.
The scope of the misconduct was partially revealed during federal civil court proceedings in 2023. At that time, counsel for McClenny Moseley and Associates acknowledged that the firm had sent at least 856 legal letters falsely claiming representation of homeowners while actually acting on behalf of a roofing company. The firm also admitted to settling at least nine matters through mediation without disclosing this conflict of interest. Additionally, the firm filed demands for damages and complaints for declaratory judgment that misrepresented who they were representing, further obscuring the true nature of their financial interests.
The human impact of these actions is detailed in the bill of information, which outlines the experiences of eight Louisiana homeowners. Most of these individuals either did not receive funds intended for roof repairs or saw their payouts reduced due to the withholding of unauthorized attorney fees and expenses. In some instances, prosecutors allege that Zach Moseley, identified in court documents as co-conspirator 1 and the firm’s managing partner, endorsed settlement checks without proper authorization from homeowners. These funds were then deposited into the law firm’s bank account rather than being directed to the victims.
The investigation has also uncovered ties to an online advertising agency named Velawcity. Federal judges in Louisiana and a state insurance department fraud probe determined that the law firm used this agency to sign up thousands of storm victims. These solicitation methods are alleged to have violated Louisiana’s legal ethics code, which prohibits paying non-lawyers to recruit clients. The use of digital marketing to target vulnerable homeowners expanded the reach of the scheme, allowing the firm to process a high volume of claims through the same deceptive channels.
Huye was charged via a bill of information rather than a grand jury indictment. Legal experts note that this procedural choice often signals a defendant’s intent to plead guilty and cooperate with authorities pursuing other targets in related cases. If convicted, Huye faces up to five years in prison and a fine of approximately $250,000. The charges represent a significant step in holding accountable those who exploited the chaos following Hurricane Ida, though many questions remain regarding the full extent of the financial losses suffered by homeowners across the state.
As the legal proceedings move forward, authorities are likely to continue investigating other individuals and entities involved in the network. The case highlights the vulnerabilities in the insurance claims process during large-scale disaster recovery efforts. It also underscores the importance of regulatory oversight in ensuring that legal and repair services provided to storm victims are transparent and ethically conducted. The outcome of Huye’s case may set a precedent for how similar schemes are prosecuted in future disaster scenarios.
Sources behind this briefing
Go to the original reporting
- The Guardian US↗Attorney charged in largest Louisiana home insurance fraud after 2021’s Hurricane Ida
