Federal prosecutors have charged a Texas-based attorney in connection with an alleged insurance fraud scheme involving Louisiana homeowners who sought compensation after Hurricane Ida devastated the region in 2021.
Richard William Huye III, 34, faces a federal charge of conspiracy to commit wire fraud. The case marks the first criminal charge resulting from a lengthy investigation into the activities of a law firm accused of improperly handling thousands of storm-related insurance claims.
Authorities allege that homeowners were misled and, in some cases, lost money intended to repair storm-damaged properties.
Alleged Scheme Targeted Hurricane-Damaged Homes
According to federal prosecutors, Huye began working for a Texas-based law firm shortly after Hurricane Ida struck southeast Louisiana in August 2021. The firm later established an office in New Orleans.
Investigators say the law firm encouraged an Alabama roofing company to expand into Louisiana and use Assignment of Benefits agreements, commonly known as AOBs. These agreements were allegedly used to obtain rights related to homeowners’ insurance claims.
Prosecutors claim that hundreds of homeowners were signed up through these arrangements and that legal representation agreements were signed without the homeowners’ knowledge or authorization in certain cases.
Huye and the law firm allegedly sent misleading letters to insurance companies stating that they represented homeowners while failing to disclose the roofing company’s involvement and interest in the insurance claims.
Hundreds of Allegedly Misleading Insurance Letters
The alleged scheme came to light during federal court proceedings in 2023.
Court proceedings revealed that at least 856 letters of representation had allegedly contained false or misleading information. Authorities also said that several insurance matters were settled through mediation without proper disclosure regarding who the law firm was actually representing.
Federal prosecutors further allege that at least one lawsuit was filed without the homeowner’s complete consent, while other legal filings allegedly misrepresented the firm’s relationship with the parties involved.
The investigation identified eight Louisiana homeowners whose property damage claims were allegedly affected by the actions described in the criminal filing. According to prosecutors, most of those homeowners either failed to receive money intended for roof repairs or received reduced amounts because of unauthorized legal fees and expenses.
Attorney Faces Possible Prison Sentence
Prosecutors also alleged that, in some cases, settlement checks were endorsed without proper homeowner authorization and funds intended for property repairs were deposited into the law firm’s bank account.
Huye has been charged with conspiracy to commit wire fraud. If convicted, he could face up to five years in prison, supervised release and a substantial financial penalty.
The case is part of a wider investigation into alleged misconduct involving legal representation and insurance claims filed after Hurricane Ida. The investigation has drawn attention to the risks facing homeowners seeking help with major insurance claims following natural disasters.
