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Two former Los Angeles Film School executives, Dave Phillips and Ben Chaib, filed a whistleblower lawsuit alleging a massive student loan scam. The suit claims the school fabricated job placements for graduates to secure millions in federal aid, misleading the Department of Education during a 2017 audit. The school, owned by James "Bill" Heavener, allegedly paid entities to create temporary jobs for graduates, falsifying employment statistics. The school denies the claims, citing a prior settlement with the Department of Education, while the former executives seek to recover fraudulently obtained funds.

Prepared by Emily Rhodes and reviewed by editorial team.