McClenny Moseley faces fines, legal investigations, lawsuits and now seems bankrupt
Texas-based regulation agency McClenny Moseley & Associates (MMA), dealing with fraud prices and tens of millions of {dollars} in fines over its “technology-enabled” hurricane litigation, has filed for chapter.
The regulation agency gained notoriety in Louisiana’s insurance coverage business final 12 months. It was found that the regulation agency had submitted 1000’s of policyholders to hurricane-related dwelling insurance coverage claims, typically with out their data.
The enterprise has greater than $100 million in property and greater than $10 million in debt, in keeping with as we speak’s Chapter 11 chapter safety paperwork signed by Zach Moseley, managing accomplice at MMA Legislation Agency. It has been proven that he has.
“In case your property are 10 instances your money owed, how will you go bankrupt? It is going to be very attention-grabbing to see if that is only a mistake or if MMA actually has over $100 million in property “It should be,” mentioned Matthew Monson, founder and proprietor of the Monson Legislation Agency and the tipster who first introduced the agency to Louisiana. A Linkedin put up on Tuesday questioned the curiosity of insurance coverage firms (LDIs).
MMA’s ‘unlawful scheme’ that insurance coverage commissioner has by no means seen earlier than
LDI imposed fines on MMA totaling $2 million in February 2023. The corporate had filed 1,500 Hurricane lawsuits in simply three months because it explored class settlement techniques. Based on LDI’s analysis, many insureds have been unaware that the corporate was claiming to symbolize them.
Former Louisiana Insurance coverage Commissioner Jim Donnellon referred to as MMA’s “unlawful scheme” “in contrast to something I’ve ever seen earlier than.”
MMA’s aggressive advertising technique has resonated with insurance coverage business professionals in Louisiana. IBA They’d acquired quite a few unsolicited messages from the corporate urging them to sue for harm brought on by the storm.
Past regulatory battles, MMA has discovered itself within the throes of authorized motion, together with a class-action lawsuit led by Monzon’s spouse, Katherine Monzon.enterprise is Seeks appeal of $10 million default judgment In a lawsuit introduced by PCG claims.
MMA couldn’t be reached for remark.
Did you find out about Hurricane dwelling insurance coverage fraud and MMA’s chapter submitting? Go away a remark beneath
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