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The Louisiana State Police has initiated a criminal investigation into the conduct of a Texas law firm, formerly McClenny Moseley & Associates (MMA), now operating under the name MMA. The firm is under scrutiny for handling numerous lawsuits related to hurricane property damage, facing disciplinary actions in federal and state courts. The investigation, prompted by an initial complaint filed on October 17, includes allegations of fraud, forgery, improper solicitation of clients, and other potential charges.
Origins of the Investigation
The Louisiana Department of Insurance initially flagged the irregularities, revealing that over 20 insurance claim lawsuits were filed for individuals who claimed they had never engaged MMA to represent them. Furthermore, some of these individuals reported not receiving the settlement funds from their cases, raising concerns about the legitimacy of the legal proceedings. The Louisiana State Police’s insurance fraud/auto theft unit in New Orleans actively pursues the case.
Allegations Against McClenny Moseley & Associates
McClenny Moseley, headquartered in Houston, Texas, filed numerous lawsuits in Louisiana state and federal courts in the aftermath of hurricanes Laura, Delta, and Ida in the previous year. In January, the law firm attracted judicial attention over allegations that its attorneys engaged in improper solicitation or payments to clients through a marketing company and a roofer. Accusations also included bringing claims against the wrong insurers, filing duplicate lawsuits, or suing insurers who had already settled with their clients.
Disciplinary Proceedings and Legal Consequences
Attorneys from McClenny Moseley have found themselves subject to disciplinary proceedings in both state and federal courts. A Louisiana federal judge has barred the firm and its attorneys from collecting fees in approximately 200 cases. The legal repercussions extend further, with the law firm and its attorneys now facing multiple malpractice lawsuits in both state and federal court from former clients who allege that the mishandling of their cases by McClenny Moseley has deprived them of the opportunity to pursue rightful compensation from their insurers.
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Department of Insurance Fines and Police Involvement
In May, the Louisiana Department of Insurance imposed a substantial $2 million fine on McClenny Moseley, accusing the attorneys of fraud and unfair trade practices involving around 850 homeowners. The department’s findings, initially brought to light by insurance defense attorney Matthew Monson, prompted further action. The Louisiana State Police officially opened its investigation in a relatively short period, considering the scale of the alleged misconduct.
Statements and Responses
Despite the mounting legal challenges, representatives for MMA and the attorneys involved, including John Zachary Moseley and William Huye, have not provided immediate comments. James McClenny, the former name partner, directed inquiries to his attorney, who has yet to respond. The Louisiana State Police spokesperson has not addressed inquiries regarding the ongoing investigation.
In a statement, a spokesperson for the Louisiana Department of Insurance emphasized the urgency of the police investigation, stating that it commenced within a relatively short period, given the enormity of the alleged actions. Matthew Monson, the attorney who initially flagged the irregularities, expressed confidence in the investigation’s legitimacy, affirming that there is a substantial basis for the ongoing scrutiny.
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