Insurance Commissioner Jim Donelon issued an emergency cease-and-desist order today to McClenny, Moseley & Associates (MMA), founding partners James McClenny and John “Zach” Moseley, and Louisiana managing partner William Huye after reviewing Louisiana Department of Insurance (LDI) investigation findings that show the firm engaged in insurance fraud and unfair trade practices through an illegal scheme involving Alabama-based Apex Roofing and Restoration.
According to findings from the ongoing investigation, MMA fraudulently misrepresented to multiple insurance companies that the Houston-based firm had been retained by Louisiana policyholders to settle hurricane claims when MMA did not represent those policyholders.
“The size and scope of McClenny, Moseley & Associates’ illegal insurance scheme is like nothing I’ve seen before,” said Commissioner Donelon. “It’s rare for the department to issue regulatory actions against entities we don’t regulate, but in this case, the order is necessary to protect policyholders from the firm’s fraudulent insurance activity.”
MMA has admitted to making over 850 misrepresentations to Louisiana insurance companies. These misrepresentations stated that policyholders had retained MMA’s legal services despite MMA knowing this was not true. Based on the LDI’s investigation, these misrepresentations were made by MMA with intent to injure, defraud or deceive Louisiana policyholders and insurers. MMA filed more than 1,500 hurricane claim lawsuits in Louisiana over the span of three months last year.
A copy of the cease-and-desist order 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.