Lawsuit Alleging Fraud at Los Angeles Film School Unsealed, Former Executives Pursue Financial Aid Recovery
Los Angeles, CA – A lawsuit alleging widespread fraud at The Los Angeles Film School has been unsealed, possibly opening the door for the recovery of federal financial aid and substantial payouts for two former school executives.The suit, filed by ex-vice president of admissions Ben Chaib and former vice-president of career development Dave Phillips, claims the school fabricated job placement rates and engaged in deceptive practices too secure accreditation and federal funding.
Founded in 1999, The Los Angeles Film School offers online and on-campus degrees in fields like animation, audio production, film production, and digital filmmaking. Tuition costs range from $46,260 for an associate of science in audio production to $87,275 for a bachelor’s in film production.
The lawsuit alleges the school incentivized employee recruitment with financial rewards and “arranged for thousands of fake job placements” by paying a music company approximately $1 million for two-day positions for graduates.Plaintiffs claim the school misrepresented its job placement success to accreditation bodies,alleging a reported rate of at least 70% while internal estimates suggested the actual figure was closer to 20%. This alleged deception is central to maintaining a key accreditation metric.
The U.S. Justice Department initially declined to intervene, leading to the unsealing of the lawsuit. if successful, the action seeks to reclaim fraudulently obtained federal financial aid, with Phillips and Chaib potentially receiving 25%-30% of any recovered funds.
The Los Angeles Film School has dismissed the lawsuit as “a campaign to extract additional money,” asserting the claims were previously “thoroughly investigated.” Both Chaib and Phillips received settlements after leaving the school following over 12 years of service. The school’s five-year accreditation was last renewed in 2023 by the Accrediting Commission of Career Schools and Colleges.
