A Texas law firm has been assessed a stiff penalty Monday over alleged insurance fraud perpetrated on Louisiana customers.
McClenny Moseley & Associates (MMA) was fined $2 million for alleged unfair trade practice and insurance fraud in a case that involved at least 850 Louisiana policyholders, according to the Louisiana Department of Insurance.
MMA founders James McClenny and John Moseley, and Louisiana partner, William Huye III were named in the penalty and each individual was fined $500,000.
“The illegal insurance scheme perpetrated by McClenny Moseley & Associates is frankly one of the most egregious cases that has ever come through this department,” Louisiana Insurance Commissioner Jim Donelon said in a statement.
“The $2 million in fines should put all bad actors on notice that fraudulent behavior will not be tolerated in Louisiana.”
During the investigation by the LDI, MMA admitted to at least 852 fraudulent misrepresentations held by Louisiana policyholders, including presenting demands for payment to the consumer’s insurance policy and receiving insurance settlement checks without the authority of the policyholder.
Any policyholder who believes they have been misrepresented by MMA is encouraged to contact the Louisiana Department of Insurance Office of Insurance Fraud online here or by phone at (225) 342-4956.
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