According to federal prosecutors, Huye joined an unnamed Texas-based law firm shortly after Hurricane Ida struck southeast Louisiana on Aug. 29, 2021. The firm later encouraged an Alabama roofing company to begin operating in Louisiana and advised it that it could use assignment of benefits, or AOB, agreements without restriction.

Prosecutors allege many homeowners’ insurance policies either prohibited such assignments or required prior approval.

The roofing company subsequently signed hundreds of Louisiana homeowners to AOB agreements and referred their insurance claims to the law firm, according to the bill of information. Prosecutors allege the firm also instructed the roofer to sign attorney-retention agreements on homeowners’ behalf without their knowledge or authorization.

Huye allegedly sent false or misleading letters of representation to insurers stating that the law firm represented homeowners while failing to disclose the roofing company’s AOB interests.

The alleged scheme came to light during federal court proceedings in February 2023. According to prosecutors, counsel for the law firm acknowledged that at least 856 letters of representation had been sent and that at least nine claims had been settled through mediation without disclosing that the firm represented the roofing company through AOBs.

The bill of information describes eight homeowners whose claims were allegedly affected. Prosecutors said some homeowners did not receive money intended for roof repairs or received reduced amounts because of allegedly unauthorized attorney fees and expenses.

Huye faces up to five years in prison, three years of supervised release and a fine of up to $250,000 if convicted. The FBI, Louisiana Department of Insurance and Louisiana State Police investigated the case. A bill of information contains allegations, and Huye is presumed innocent unless proven guilty beyond a reasonable doubt.