Charges filed by Los Angeles City Attorney Mike Feuer have put an abrupt end to operations for numerous acting workshops. Feuer leveled accusations against five workshop companies, claiming that they operated in violation of a 2009 law known as the Krekorian Talent Scam Prevention Act.
At any given time, Hollywood is home to thousands of aspiring actors who are desperate to break into show business. It’s hard for these young artists to gain the attention of casting directors who offer parts in movies and television shows, especially when the actors don’t have a top agent working for them. Workshops run by defendants like the Actor’s Key, the Actor’s Link and Studio Productions purport to offer educational classes that allow actors to essentially audition for casting directors. The trouble, as Feuer sees it, is that the workshops charge the actors for their participation. Under the definitions of the Krekorian law, this essentially is a pay-to-play scam in which the actors must submit a fee in order to audition.
Feuer filed charges against a total of five workshop companies, including nearly two dozen individuals, on February 9. Just five days later, one of the most popular and prolific of these workshops, the Actor’s Key, ceased operations and filed for Chapter 7 bankruptcy.
Owners Kristen Caldwell and Katherine Shaw, along with workshop manager Jessica Gardner, are all named in Feuer’s charges. In a statement given to the Hollywood Reporter, the principals of the Acting Key said, “… we have found that there is no realistic alternative to closing the business, and commencing bankruptcy proceedings … .” Additionally, they claim that they have been listing upcoming workshops as “full” for the last several weeks in anticipation of the closure and the charges filed by the city.
Caldwell, Shaw, Gardner and the other defendants are scheduled for arraignment on numerous charges in March. Penalties may include one year in jail and fines of $10,000. Given the high stakes involved, it is clear that understanding all relevant facets of the law is crucial for business owners. Working with a reputable business attorney is the best way to ensure compliance.