Insurance Commissioner Jim Donelon fines a Texas law firm $2 million for its role in an insurance fraud scheme. He said McClenny, Mosely, and Associates, also known as MMA, admitted to misrepresenting 856 claims of Louisiana policyholders.
“Nothing in my time, of 17 years at the Department of Insurance, compares with this in the size and spread and the extent of this fraud,” said Donelon.
Donelon said law firms are usually regulated by the bar association and the Supreme Court when it comes to misrepresentation.
“But we do have the authority when we are made aware of insurance fraud being perpetrated by anyone in any profession to take action against those individuals and that’s the basis on which we’re acting,” said Donelon.
The scheme involved a roofing company going door to door in areas of suspected damage, filing claims, and collecting money from insurers on a homeowner’s policy without the policyholder’s authority.
“We have evidence that folk’s names were signed, not by themselves, that folks were totally unaware that they were represented by a lawyer at all, much less MMA, which they’d never heard of,” said Donelon.
If you believe you might have been misrepresented fraudulently by MMA, you’re asked to call the Louisiana Department of Insurance at 1-800-259-6300 or visit ldi.la.gov.
Louisiana’s Western District federal court has also suspended the law firm for fraudulent Hurricane Laura suits.
Comments