L.A. Film School sued over alleged accreditation scheme involving fake graduate jobs

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Two former leaders at The Los Angeles Film School have filed a lawsuit claiming the school illegally obtained government money through a deceptive accreditation process.

I was really surprised to hear that Dave Phillips, the former VP of career development, and Ben Chaib, who used to be VP of admissions, are suing The L.A. Film School! Apparently, they’re claiming the school broke federal employment laws and didn’t meet the standards required for accreditation. What’s even more shocking is that the lawsuit also includes Full Sail University – the school’s sister campus in Florida – along with its owner, James Heavener, and a couple of other people involved in the business.

So, a lawsuit that was first brought up in a Los Angeles federal court back in June of this year has just become public. It was sealed initially, but now we’re seeing it because the Department of Justice decided not to pursue an investigation. As a film buff, I’m always curious about the behind-the-scenes legal stuff, and this one finally surfaced!

We weren’t able to get a comment from LAFS right away, but they have denied these claims in the past.

In a statement to Variety last week, the school’s lawyers said that Phillips and Chaib are trying to bring up old, previously investigated and resolved claims that are no longer legally valid, having already been settled by the Department of Education.

To remain accredited and eligible for federal funding, universities must demonstrate that at least 70% of their graduates secure and maintain employment in their field of study. However, a lawsuit claims the university’s film school is failing to meet this standard. The plaintiffs point to an internal report showing most graduates earn $5,000 or less annually in film-related jobs, and allege that only 20% of graduates are able to find work in the field.

As a movie critic, I’m always interested in where the money flows, and a recent report revealed some surprising figures about film schools. It turns out the Los Angeles Film School (LAFS) receives over $85 million annually in federal funding – a significant chunk of that, around $60 million, comes in the form of student loans. They also get over $19 million specifically for veterans’ aid. But it doesn’t stop there. Full Sail University in Winter Park, Florida, which focuses on training for entertainment careers, is receiving an even larger amount – over $377 million per year in federal financial assistance. It’s a lot of money flowing into these institutions, and it definitely warrants a closer look.

According to the lawsuit, for the past decade, almost all federal money received by the institution involved fraud. Specifically, the institution allegedly used taxpayer dollars to create short-term jobs for graduates of the LAFS program.

As a longtime film school enthusiast, I was shocked to read about this alleged scheme. Apparently, between 2010 and 2017, the university is accused of spending almost $1 million to create these short-term jobs – lasting only a couple of days – through nonprofits and vendors they’d already paid. What’s really troubling is that students were led to believe these were legitimate production opportunities or post-graduation apprenticeships, but the lawsuit claims it was all a way for the school to artificially inflate its numbers and maintain accreditation. It feels like a real betrayal of the students’ trust and a misuse of funds.

Federal law prevents colleges from offering any kind of payment – like commissions or bonuses – to staff based on how many students they enroll. The plaintiffs in this case claim that during a 2017 audit, LAFS misled the Department of Education by denying they had such a system and failing to reveal their relationships with outside vendors.

The former executives claim the school not only misused federal funding but also deceived students and applicants by exaggerating job prospects and providing false or misleading information about employment opportunities.

Founded in 1999 and situated on Sunset Boulevard in Hollywood, LAFS provides both bachelor’s and associate’s degrees. Programs cover fields like film, film production, and animation, and tuition costs generally fall between $40,000 and $80,000.

Phillips and Chaib both spent twelve years working at the film school, holding senior leadership positions. In 2022, the school decided not to renew Phillips’ contract.

In 2023, the Accrediting Commission of Career Schools and Colleges reaffirmed the school’s accreditation, granting it a renewal that lasts for five years.

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2025-09-25 00:31