Texas Law Firm Escapes $2M Fine for Alleged Hurricane Laura Insurance Fraud

A Texas law firm accused of mishandling Hurricane Laura insurance claims will not have to pay a $2 million fine after an administrative law judge ruled that the Louisiana Department of Insurance (LDI) overstepped its authority. The firm, McClenny, Moseley & Associates (MMA), was fined in 2023 after allegedly filing fraudulent claims on behalf of Louisiana policyholders without proper representation. Former Insurance Commissioner Jim Donelon issued the penalties, but the judge determined LDI lacked enforcement power in this case.

Current Insurance Commissioner Tim Temple strongly disagrees with the ruling and is pushing for further legal action against the firm. He has also supported legislation to strengthen LDI’s authority to investigate and penalize insurance fraud. Despite the judge’s decision, Louisiana’s Office of Insurance Fraud continues to investigate MMA’s alleged misconduct, which some policyholders claim delayed critical claim payments for over a year.

Hurricane survivor Sylvia Sonnier expressed frustration over the firm’s actions, arguing that its alleged misconduct caused unnecessary delays in receiving insurance payouts. While the legal battle continues, the firm remains under scrutiny for its handling of more than 1,400 hurricane-related cases. Attempts to reach MMA for comment were unsuccessful.