Former Executives Expose Allegations of Major Fraud at Los Angeles Film School: Fake Job Offers for Graduates Uncovered

Two former executives from the Los Angeles Film School (LAFS) claim the institution has been running a significant student loan scam for years. They allege the school arranged thousands of fake job placements for its graduates to maintain its funding and accreditation.

Dave Phillips, the ex-VP of career development, and Ben Chaib, the former VP of admissions, filed a whistleblower lawsuit in 2024. The suit suggests that almost all of the tens of millions the school receives annually from federal student aid programs are based on fraudulent claims. They allege that many students were misled about their job prospects after graduation.

LAFS is located on Sunset Boulevard and offers degrees in fields like film and music production. Tuition ranges from $40,000 to $80,000 per program. According to Phillips, most graduates struggle to find work in their field, with some reporting an annual income of just $0 to $5,000.

The school receives around $85 million yearly in federal assistance, primarily from student loans. By comparison, Full Sail University, which is also owned by LAFS’s parent company, takes in about $377 million from similar sources.

The lawsuit claims LAFS executives manipulated data to meet accreditation standards that require at least 70% of graduates to secure work in their field. If they fell short, they risked losing federal aid eligibility. Phillips asserts that only about 20% of graduates could find jobs independently, prompting the need to “engineer” fake employment opportunities.

LAFS allegedly paid nearly $1 million to Ivar Music Group and other entities from 2010 to 2017 to create these false job placements. These were temporary roles that misrepresented graduate employment to incoming students and federal regulators.

The school is expected to file a motion to dismiss the lawsuit soon. Their attorneys have denied the allegations, claiming the accusations were thoroughly investigated and settled by the Department of Education between 2017 and 2020.

The whistleblower complaint also alleges that LAFS improperly tied sales team compensation to student enrollment, a practice which could lead to unethical recruitment tactics. LAFS allegedly hid this from Department of Education auditors, raising questions about transparency within the school.

Historically, issues surrounding for-profit colleges have gained attention. For instance, the University of Phoenix settled similar allegations for $67.5 million in 2009, and Heald College was fined $29.7 million in 2015 for misleading job placement statistics. These past experiences have influenced the federal government to tighten regulations on for-profit institutions.

Today, user reactions on social media reflect a growing skepticism toward for-profit schools. Many prospective students now seek transparency and proof of job placement success before committing to programs.

Phillips and Chaib are not only seeking justice for themselves but also hope to recover misappropriated federal funds for the U.S. government. Whistleblowers like them can earn a percentage of any recovery, underscoring the importance of accountability in the education sector.

As the case develops, it highlights a significant need for stricter oversight of for-profit institutions. The goal should be to protect students and ensure they receive the quality education they pay for, ultimately paving a clearer path to successful careers.



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Los Angeles Film School