Donelon finds that McClenny, Moseley & Associates committed insurance fraud against hundreds of policyholders and insurers in Louisiana
Published 3:34 pm Friday 17 February 2023
Insurance Commissioner Jim Donelon today issued an urgent cease and desist order to McClenny, Moseley & Associates (MMA), founding partners James McClenny and John “Zach” Moseley, and Louisiana managing partner William Huye after reviewing the Louisiana Department of Insurance (LDI). . Investigation results showing the company engaged in insurance fraud and unfair trading practices through an illegal scheme involving Alabama-based Apex Roofing and Restoration.
According to the findings of the ongoing investigation, MMA fraudulently misrepresented to several insurance companies that the Houston-based company was hired by Louisiana policyholders to settle hurricane claims, even though MMA was not representing those policyholders.
“The scale and reach of McClenny, Moseley & Associates’ illegal insurance scheme is unlike anything I have seen before,” said Commissioner Donelon. “It is rare for the department to issue regulatory action against companies that we do not regulate, but in this case the order is necessary to protect policyholders from the company’s fraudulent insurance activities.”
MMA has admitted to making over 850 false statements to Louisiana insurance companies. These misrepresentations stated that policyholders had sought MMA’s legal advice, even though MMA knew this was not true. Based on the LDI’s investigation, these false statements were made by MMA with intent to harm, defraud or mislead policyholders and insurers in Louisiana. MMA filed more than 1,500 lawsuits over a three-month period last year over Louisiana hurricane claims.
A copy of the cease and desist order can be found here.
Any policyholder who believes they may have been fraudulently represented by the law firm of McClenny, Moseley & Associates is encouraged to contact the LDI Office of Insurance Fraud at 225-342-4956. Anyone who believes they have been scammed 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 and assists individuals and businesses with the information and resources they need to educate consumers about insurance. As the regulator, the LDI enforces the laws that create a fair and stable market and ensures that insurers comply with applicable laws to protect policyholders. You can contact LDI at 1-800-259-5300 or at www.ldi.la.gov.
