Los Angeles Film School Hit With Fraud Lawsuit Over Student Loans and Job Placement Claims

A newly unsealed lawsuit has placed the Los Angeles Film School under intense scrutiny, with two former top executives accusing the for-profit university of orchestrating widespread student loan fraud and misleading students about job opportunities after graduation.The lawsuit, first reported by Variety, was filed by former admissions vice president Ben Chaib and former career development vice president Dave Phillips. Both executives, who worked at the school for more than a decade, allege that the institution misled students, deceived the Department of Education, and manipulated its job placement records.Founded in 1999, the Los Angeles Film School is known for its degree programs in animation, audio production, film production, and digital filmmaking. Domestic students pay tuition ranging from about $46,260 for an associate degree in audio production to $87,275 for a bachelor’s in film production. The school markets itself as having strong industry connections with Hollywood professionals.According to the lawsuit, the school allegedly tied employee bonuses to student recruitment, incentivizing aggressive enrollment practices. It also claims the institution paid nearly $1 million to a music company to hire graduates for short, two-day jobs, artificially inflating employment numbers.The executives contend that the actual job placement rate for graduates was closer to 20%, far below the 70% threshold required for accreditation. “Arranging for thousands of fake job placements” formed the basis of the alleged scheme, the filing states.Chaib and Phillips previously received settlements upon leaving the school but now stand to gain 25–30% of any funds recovered if the lawsuit succeeds. The school has dismissed the case, calling it “a campaign to extract additional money” and saying earlier claims had already been “thoroughly investigated.”The Department of Justice declined to intervene, but the case could force the school to return federal financial aid if fraud is proven. The Accrediting Commission of Career Schools and Colleges most recently renewed the school’s five-year accreditation in 2023.