A former attorney associated with a Texas-based law firm has been charged by federal prosecutors in connection with an alleged home insurance fraud scheme involving Louisiana homeowners affected by Hurricane Ida.
Richard William Huye III, 34, faces a charge of conspiracy to commit wire fraud following a lengthy investigation into claims handling and client solicitation practices after the devastating 2021 hurricane.
Federal Case Targets Alleged Insurance Fraud Scheme
According to federal charging documents, Huye began working with the law firm shortly after Hurricane Ida struck southeast Louisiana in August 2021. He later helped establish an office in New Orleans while the firm allegedly worked alongside a roofing company operating in the state.
Prosecutors claim that homeowners were signed up using assignment-of-benefits agreements that could allow insurance payments to be directed to the roofing company. However, authorities allege that some of these arrangements were not properly authorized by homeowners.
The investigation centers on allegations that thousands of storm victims may have been improperly solicited as clients and that some homeowners experienced financial losses or reductions in insurance settlements.
Homeowners Allegedly Lost Part of Their Insurance Proceeds
Federal authorities outlined several cases involving Louisiana homeowners whose property damage claims were allegedly affected by the scheme.
Prosecutors claim that some homeowners did not receive the full funds intended for repairs, while others allegedly had settlement amounts reduced because of unauthorized legal fees and expenses.
The charging documents also allege that legal actions and insurance-related claims were filed without full client authorization in certain cases. Authorities further accused those involved of misrepresenting who the law firm officially represented during parts of the claims process.
Previous Penalties and Ongoing Investigation
The criminal case follows earlier investigations and disciplinary action connected to the law firm and its activities in Louisiana.
Huye was previously disbarred in Louisiana, while significant financial penalties were imposed against the firm and individuals connected to the case. The law firm later filed for bankruptcy protection.
If convicted of conspiracy to commit wire fraud, Huye could face up to five years in prison and a fine of up to $250,000.
The investigation remains ongoing, and authorities could potentially pursue additional action against other individuals connected to the alleged scheme.
