Louisiana Insurance coverage Commissioner Jim Donelon has fined Texas legislation agency McLenny Moseley & Associates (MMA) and related companions $2 million for hurricane-related insurance coverage fraud involving a minimum of 850 Louisiana owners and policyholders.

“The unlawful insurance coverage scheme perpetrated by McClenny Moseley & Associates is frankly one of the vital egregious circumstances that has ever come by means of this division,” mentioned Donelon. “The $2 million in fines ought to put all unhealthy actors on discover that fraudulent conduct won’t be tolerated in Louisiana.”

MMA, founding companions James McLenny and John Moseley, and Louisiana managing companion William Huye III had been every fined $500,000, the utmost penalty permitted below present legislation.

MMA has admitted to a minimum of 856 fraudulent misrepresentations that it had been retained by Louisiana policyholders to settle claims when it didn’t characterize the people, as per an ongoing Lousiana Division of Insurance coverage investigation (LDI), the LDI mentioned in a press launch. 

The legislation agency’s fraudulent conduct included presenting cost calls for, invoking coverage appraisal provisions, and receiving and negotiating settlement checks with out policyholder authorization, the LDI mentioned.

“Based mostly on the LDI’s investigation, these misrepresentations and unauthorized authorized representations had been made by MMA with intent to injure, defraud or deceive Louisiana policyholders and insurers for the aim of diverting insurance coverage declare proceeds to their profit and amassing predatory skilled service charges to which they weren’t entitled,” the LDI mentioned.

The LDI urged policyholders who might have been “fraudulently represented” by the agency to contact its workplace of insurance coverage fraud.