A man who was an attorney for a Texas law firm is expected to plead guilty in connection with a large-scale insurance fraud scheme that allegedly took place in the wake of Hurricane Ida in Louisiana in 2021. Richard William Huye III, who was charged with conspiracy to commit wire fraud, is set to appear in federal court in New Orleans on September 28 for two hearings—one for a preliminary plea and another for a rearraignment. These types of hearings are often used when a defendant agrees to abandon a "not guilty" plea in exchange for a deal with prosecutors, avoiding a trial. Huye’s case is being handled by federal magistrate Karen Wells Roby and U.S. District Court Judge William Crain. His attorney, Sean Toomey, has not yet commented on the matter. According to court documents, Huye helped his firm, McClenny Moseley and Associates (MMA), open an office in New Orleans shortly after Hurricane Ida struck the region as a Category 4 storm, causing widespread damage. Prosecutors allege that MMA assisted homeowners in filing insurance claims and encouraged an Alabama-based roofing company, Apex, to operate in Louisiana. MMA is accused of convincing Apex that it could use legal forms called “assignment of benefits” (AOB) to manage insurance claims without restrictions. However, most Louisiana insurance policies require approval from the insurer before allowing AOBs. Prosecutors claim that Apex persuaded hundreds of homeowners to sign over their insurance claims, often without their knowledge, and then sent those claims to MMA. MMA and Huye are also accused of misleading insurance companies by claiming they were the sole representatives of the homeowners, while failing to disclose that the claims had been transferred to Apex. Huye was charged through a legal document called a "bill of information" on August 28, which is often used when a defendant plans to plead guilty and cooperate with authorities. This document focuses on eight Louisiana homeowners who suffered financial harm due to the alleged scheme, many of whom either did not receive the money needed to repair their homes or received reduced compensation after unauthorized legal fees were withheld. The bill of information also references an unnamed "co-conspirator" associated with MMA, which is believed to be the firm’s managing partner, Zach Moseley. Before Huye was charged, Louisiana federal judges and the state insurance department found that MMA had used an online advertising company, Velawcity, to recruit thousands of storm victims. This practice violated legal ethics rules in Louisiana, which prohibit attorneys from paying non-attorneys to sign up clients. As a result, MMA was forced to forfeit its clients, and Huye was disbarred from practicing law in the state. The insurance commissioner also imposed a record $2 million in fines on Huye, Moseley, and MMA. MMA later filed for bankruptcy in Houston in 2024. In July, Louisiana’s Supreme Court ruled that MMA could not collect any fees from law firms that took over its clients’ cases after they were illicitly signed up. Huye’s wire fraud charge could lead to up to five years in prison and a fine of about $250,000. However, those who plead guilty before trial typically receive lighter sentences. Huye has since moved from New Orleans to Austin, Texas. His case is one of two major insurance fraud prosecutions in Louisiana. The other involved more than 60 people convicted of staging car accidents with 18-wheelers to file fraudulent insurance claims. In a related case, a federal jury deadlocked on murder charges against two key figures, Sean Alfortish and Leon "Chunky" Parker, who were accused of orchestrating the assassination of a witness. While the murder charges led to a mistrial, Alfortish—himself a disbarred attorney—was convicted of fraud. Prosecutors have vowed to retry the murder case.