Texas headquartered regulation agency McClenny, Moseley & Associates (MMA), which has confronted fraud allegations and multi-million-dollar fines over “tech-enabled” hurricane lawsuits, has filed for chapter.

The regulation agency shot to infamy within the Louisiana insurance coverage neighborhood final 12 months, when it transpired the enterprise had signed up doubtlessly 1000’s of policyholders for hurricane-related dwelling insurance coverage claims, in lots of instances with out their information.

Chapter 11 chapter safety paperwork signed by MMA Legislation Agency managing associate Zach Moseley, dated at this time, indicated the enterprise has upwards of $100 million in property and $10 million in liabilities.

“In case your property are 10 instances your liabilities, how are you bankrupt? Will probably be very fascinating to see if that is only a mistake, or whether or not MMA actually has over $100 million in property,” Matthew Monson, The Monson Legislation Agency founder and supervisor and the tipster who first introduced the regulation agency to the Louisiana Division of Insurance coverage’s (LDI) consideration, queried in a Linkedin submit on Tuesday.

MMA’s “unlawful scheme” like nothing insurance coverage commissioner had seen earlier than

The LDI slapped MMA with fines totaling $2 million in February 2023. The agency had filed 1,500 hurricane lawsuits in simply three months because it seemed to mass settlement techniques. Many insureds weren’t conscious that the agency claimed to signify them, the LDI discovered.

Former Louisiana Commissioner of Insurance coverage Jim Donelon described MMA’s “unlawful scheme” as “like nothing I’ve ever seen earlier than”.

MMA’s aggressive advertising techniques reached Louisiana insurance coverage trade professionals, who beforehand instructed IBA they’d acquired quite a few unsolicited messages from the agency urging them to file lawsuits for storm harm.

Exterior of its regulatory wranglings, MMA has discovered itself dogged by authorized actions, together with a category motion spearheaded by Monson’s spouse, Katherine Monson. The enterprise has sought to enchantment a $10 million default judgment in a case introduced by PCG Claims.

MMA was not instantly out there for remark.

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