Louisiana Lawyer Faces Wire Fraud Charge Over Hurricane Ida Insurance Scheme
Richard William Huye III, an attorney for a Texas law firm, faces a federal charge of conspiracy to commit wire fraud in connection with an alleged scheme that defrauded Louisiana homeowners after Hurricane Ida. The charge is the first from an investigation into the McClenny Moseley and Associates firm, which solicited thousands of storm victims. The firm allegedly used assignment of benefits forms to improperly collect insurance payments.
Huye, 34, began working for the firm just days after Hurricane Ida made landfall in late August 2021, and he opened its New Orleans office the following month. The scheme allegedly involved directing an Alabama roofing company to use assignment of benefits forms, which let the roofer seek direct payment from insurers despite most Louisiana homeowners having clauses barring such arrangements. Huye is accused of sending hundreds of misleading representation letters to insurers while concealing the roofing company's involvement.
Federal civil proceedings in 2023 first exposed the alleged fraud, with the firm admitting it sent at least 856 false legal letters claiming to represent homeowners when it was actually acting for the roofing company. The charge against Huye arrives via a bill of information, which often signals a defendant intends to plead guilty and cooperate with prosecutors pursuing other targets in the investigation.
This case could erode public trust in both the legal profession and the insurance claims process for disaster victims. Homeowners who were already traumatized by Hurricane Ida may face prolonged uncertainty over their payouts, and the scheme could make legitimate firms more cautious about taking storm-related cases. It may also prompt insurers to scrutinize future claims more aggressively, potentially slowing recovery for genuine victims while authorities continue investigating other individuals connected to the alleged fraud.