FOR IMMEDIATE RELEASE

May 2, 2023

Donelon Issues $2 Million in Total Fines to McClenny Moseley & Associates for Massive Insurance Fraud Scheme

Insurance Commissioner Jim Donelon issued fines totaling $2 million yesterday to Texas law firm McClenny Moseley & Associates (MMA), founding partners James McClenny and John Moseley, and Louisiana managing partner William Huye III for engaging in unfair trade practices and insurance fraud involving at least 850 Louisiana homeowners and policyholders. MMA, McClenny, Moseley and Huye were each fined $500,000, the maximum allowed under current law.

“The illegal insurance scheme perpetrated by McClenny Moseley & Associates is frankly one of the most egregious cases that has ever come through this department,” said Commissioner Donelon. “The $2 million in fines should put all bad actors on notice that fraudulent behavior will not be tolerated in Louisiana.”

According to findings from the Louisiana Department of Insurance’s (LDI) ongoing investigation, MMA admitted to at least 856 fraudulent misrepresentations that it had been retained by Louisiana policyholders to settle claims when MMA did not represent those policyholders. MMA’s fraudulent behavior included presenting demands for payment pursuant to the consumer’s insurance policy, invoking the appraisal provision of the policy, and receiving and negotiating insurance settlement checks without the authority to do so from the policyholder.  

Based on the LDI’s investigation, these misrepresentations and unauthorized legal representations were made by MMA with intent to injure, defraud or deceive Louisiana policyholders and insurers for the purpose of diverting insurance claim proceeds to their benefit and collecting predatory professional service fees to which they were not entitled.

The LDI previously issued a cease-and-desist order, notice of wrongful conduct and notice of investigative proceedings to MMA on February 17, 2023. A consolidated copy of the four Notice of Fine documents issued on May 1, 2023, is available here.

Any policyholder who believes they may have been fraudulently represented by the law firm McClenny Moseley & Associates is encouraged to contact the LDI Office of Insurance Fraud at 225-342-4956. Anyone who believes they have been defrauded or witnessed insurance fraud can report their suspicions by phone or online at www.ldi.la.gov/reportfraud.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.