The Los Angeles Film School is at the center of a lawsuit of complainants from two former executives who allege that the institution illegally compiled government funds in an elaborate accreditation scheme.
Dave Phillips and Ben Chaib, the former vice president of professional development of the school and vice president of admission, respectively, allege in a federal demand that the Los Angeles Film School violated federal employment requirements and accreditation standards. The lawsuit also appoints the counterpart of Florida Full Sail University of Lafs, its main owner James Healer and two other commercial partners as accused.
The lawsuit, originally filed in the Federal Court of Los Angeles in June 2024, was recently revealed after the Department of Justice chose not to investigate.
LaF representatives could not be contacted immediately to comment, but have previously denied claims.
In a statement to Variety last week, school lawyers said Phillips and Chaib are trying to “resurrect erroneous and erroneous accusations, which were already investigated and resolved by the Department of Education.”
In order for a university to be accredited and receive federal funds, the accreditation criteria indicate that a school must successfully instruct 70% of its students who terrify and have work for which they are trained. The plaintiffs argue that the graduates of the Film School cannot receive entry level positions, citing an internal report that shows that most graduates earn $ 5,000 or less in their field of study. Only 20% of the students could find work, claim the demand.
LAFS receives more than $ 85 million a year in federal financial assistance, including approximately $ 60 million in federal loans for students and more than $ 19 million in veteran financial aid funds. The Full Sail de Winter Park University, Florida, which teaches curriculum in adjacent entertainment fields, also obtains more than $ 377 million per year in federal financial assistance, according to the complaint.
“For at least the last ten years, almost all federal funds granted and taken as a result of fraud with the institution using taxpayers funds to finance and facilitate multiple temporary employment positions for LaFS graduates,” says the demand.
In search of continuing to collect government funds, it is alleged that the university spent almost $ 1 million (between 2010 and 2017) to provide temporary employment of non -profit organizations and sellers paid. These works would generally last two days; Lafs would determine who would be hired, his schedule and salary. According to the demand, the students believed that these opportunities were “internal production opportunities” and “postgraduate learning”, but instead, they were planned and paid by the school to remain an accredited university, according to the demand.
Federal Law prohibits higher education from “provid[ing] Any commission, bonus or other payment of incentives based directly or indirectly on success in obtaining registration. “When LaFS was audited in 2017, the plaintiffs also claim that the school cheated the Department of Education Auditors, denied the existence of the incentive compensation system and could not reveal their connection with the suppliers.
Beyond collecting these federal funds, the former executives argue that the school cheated the students and the possible affiliates by exaggerating the availability of jobs and making false or deceptive statements related to employment.
LAFS was created in 1999 and is found in Sunset Boulevard in Hollywood. It offers a variety of degree titles and associates in areas that include films, film production and animation, with a registration that varies between $ 40,000 and $ 80,000.
Both the plaintiffs, Phillips and Chaib, worked at the film school for 12 years and were members of the senior executive team. The Phillips contract was not renewed in 2022.
The Schools and Carreras Colleges Accreditation Commission recently renewed school accreditation in 2023 for a period of five years.
