Key facts
- Attorney Richard William Huye III faces charges of conspiracy to commit wire fraud.
- Huye allegedly helped law firm MMA open an office in New Orleans after Hurricane Ida.
- MMA and Apex roofing company allegedly used assignment of benefits forms to control insurance claims.
- Huye and MMA are accused of misrepresenting homeowners' claims to insurers.
- Huye's bill of information details alleged machinations affecting eight homeowners' claims.
- A rearraignment hearing, often indicating a guilty plea, is scheduled for September 28.
Richard William Huye III, an attorney facing federal charges for his alleged involvement in a property insurance fraud scheme following Hurricane Ida in 2021, is reportedly poised to plead guilty. Filings in New Orleans federal court indicate Huye is scheduled for a rearraignment hearing on September 28, a step that typically signifies a defendant's agreement with prosecutors to abandon a not-guilty plea. Huye, who worked for the law firm McClenny Moseley and Associates (MMA), faces a count of conspiracy to commit wire fraud.
Prosecutors allege that Huye helped MMA establish an office in New Orleans shortly after Hurricane Ida devastated the region. The firm, along with an Alabama roofing company named Apex, is accused of exploiting assignment of benefits (AOB) forms to control homeowners' insurance claims, often without proper authorization or disclosure to insurers. Many Louisiana policies restrict AOBs without insurer approval. Huye and MMA are accused of sending letters to insurance companies falsely claiming exclusive representation of homeowners while failing to disclose that Apex had taken control of their claims.
Huye was charged via a bill of information on August 28, which prosecutors often use when a defendant intends to cooperate. This bill of information specifically references eight homeowners whose claims were allegedly harmed by Huye and MMA's actions, resulting in reduced payouts or no funds for repairs due to unauthorized fees. The bill of information also refers to an MMA associate as "co-conspirator 1," believed to be managing partner Zach Moseley.
Prior to Huye's charges, MMA was investigated by Louisiana judges and the state's insurance department for allegedly using an online advertising agency, Velawcity, to solicit clients, which violates the state's legal ethics code. Consequently, MMA was forced to forfeit its clients, and Huye was disbarred in Louisiana. The state's insurance commissioner levied a record $2 million fine against Huye, Moseley, and MMA. MMA filed for bankruptcy protection in 2024, and a Louisiana Supreme Court ruling stated the firm could not collect fees from firms that took over its clients if the sign-ups were illicit.
The conspiracy to commit wire fraud charge carries a potential penalty of up to five years in prison and a $250,000 fine, though defendants who plead guilty often receive lesser sentences. This case is one of two significant federal insurance fraud prosecutions in Louisiana. The other involves over 60 convictions for a scheme involving staged car accidents with 18-wheelers. In that separate case, a jury deadlocked on murder charges against Sean Alfortish and Leon "Chunky" Parker, leading to a mistrial on those counts, though Alfortish was convicted of fraud charges.