Allegations Against Los Angeles Film School
Two ex-executives from the Los Angeles Film School have filed a lawsuit claiming the institution has run a significant student loan scam for years, which includes orchestrating numerous falsified job placements for its graduates.
Fraudulent Activities Uncovered
The executives assert that the Hollywood-based school misled the Department of Education during a 2017 audit in an attempt to conceal its fraudulent practices.
Whistleblower Lawsuit Details
Dave Phillips, the former VP of career development, and Ben Chaib, the ex-VP of admissions, initiated a whistleblower lawsuit against the school in 2024. The suit, recently unsealed, claims that nearly all of the substantial federal student aid funds the school receives each year stem from fraudulent activities.
Student Employment Prospects Misrepresented
The lawsuit accuses the school of misleading thousands of students with false representations regarding the employment opportunities available to graduates.
Financial Aid and Employment Data
The school offers both two- and four-year degree programs in areas such as film and music production and animation, with tuition fees ranging from $40,000 to $80,000. According to the lawsuit, most graduates struggle to secure entry-level positions, with many reporting an annual income of only $0-$5,000 in their respective fields of study.
Major Funding Sources
The Los Angeles Film School reportedly receives around $85 million annually in federal assistance, with approximately $60 million originating from student loans. The suit claims that the school engaged in fraudulent practices to satisfy critical accreditation requirements, as failing to do so would jeopardize their federal funding eligibility.
Legal Proceedings and Settlements
The Los Angeles Film School is set to file a motion to dismiss the lawsuit on October 1. The school’s legal team has denied the allegations, stating that the claims were previously scrutinized and addressed by the Department of Education. Phillips and Chaib’s whistleblower suit seeks to recover fraudulently obtained federal funds, with provisions for a financial reward for their efforts. Additionally, the lawsuit highlights the school’s questionable hiring practices and incentive compensation structure, leading to alleged misrepresentation regarding its graduates’ employment statuses.
