Richard William Huye III, a former attorney, appears poised to plead guilty in connection with an alleged major property insurance fraud scheme following Hurricane Ida in 2021. Court filings indicate Huye, who faces a charge of conspiracy to commit wire fraud, is scheduled for a rearraignment hearing on September 28 in New Orleans’s federal courthouse.
Rearraignments typically occur when a defendant agrees to change a not-guilty plea as part of an agreement with prosecutors. Huye is also scheduled for an initial plea hearing about 90 minutes earlier in the same courthouse.
Prosecutors allege that Huye, 34, helped Texas law firm McClenny Moseley and Associates (MMA) open an office in New Orleans shortly after Hurricane Ida. MMA is accused of handling storm victims' insurance claims and encouraging an Alabama roofing company, Apex, to operate in Louisiana, allegedly using assignment of benefits (AOB) forms to control homeowners' insurance claims despite policy restrictions.
Court filings contend that Apex persuaded hundreds of homeowners to sign over their insurance claims to MMA, and in some instances, signed legal agreements on behalf of homeowners without their knowledge. Huye and MMA are also accused of sending letters to insurance companies stating they exclusively represented homeowners, without disclosing that clients had signed over claims to Apex.
Huye was charged via a bill of information on August 28, which often signals a defendant's intent to plead guilty and cooperate with authorities. The bill of information focuses on eight Louisiana homeowners whose property damage claims were allegedly affected by Huye and MMA's actions, with some victims not receiving roof repair funds or having amounts reduced due to unauthorised fees.
Louisiana previously disbarred Huye from practicing law in the state and imposed $2 million in fines on him, MMA, and managing partner Zach Moseley. MMA filed for federal bankruptcy protection in 2024. The conspiracy to commit wire fraud charge could carry a sentence of up to five years in prison and a fine of approximately $250,000.