Too many actors have come to L.A. in pursuit of their dreams only to find themselves starring in the real-life nightmare of being victimized by a scam. Even savvy actors have lost thousands of dollars to swindlers offering phony services and/or posing as agents, managers, casting directors, or producers.
When it comes to avoiding scams, knowledge is power. How can actors protect themselves?
Erik DeSando, former president and owner of Identity Talent Agency and current CEO of Be Productions, says actors new to L.A. should expect to shell out for headshots, classes, CD workshops, and other services. He notes that actors often think they're getting scammed if a service provider asks for any amount of money. "I do believe there are times you should spend money," he says. The key is knowing the difference between a fair price and an unreasonable fee. "You want to avoid anybody who is charging you more than retail for service. For instance, if headshots retail for $200 to $400 and somebody's charging you $2,000—and it's not Herb Ritts who's shooting your photos—then don't spend the money."
DeSando, who has worked as a manager and CD, advises avoiding anyone who promises that his or her services will further your career: "If you're spending because somebody's telling you that if you do it with them, they're going to do [something] for you…it's your classic scam. They're going to get you to overspend on the service with the promise of something happening."
Many aspiring actors and models fell for such promises made by former boy-band promoter Lou Pearlman, who perpetrated one of the largest talent and modeling scams in America. The scheme led by Pearlman charged aspiring performers as much as $2,000 to upload their headshots into an online database run by companies under several names—including Wilhelmina Scouting Network, Trans Continental Talent, and Web Style Network. Subscribers were told the sites were frequented by hundreds of top CDs, producers, directors, and agents, yearning to find undiscovered stars.
Les Henderson, who delved into Pearlman's scam in his book Under Investigation, says, "It's been shown that there weren't thousands of talent [agents], directors, or what have you visiting the site. When they started out, it was $395 plus $20 a month to be on the website. Eventually they just kept raising it and raising it. It was something that started very small and eventually, through a number of different company names, became this huge operation."
A two-year investigation by Florida's attorney general's office into Pearlman's model-scouting business was called off. But the former 'N Sync and Backstreet Boys manager was sentenced in May to 25 years in prison for bilking investors and banks out of more than $300 million through various operations.
Because many businesses offer forums where actors' can post marketing materials and search casting notices, it can be difficult to tell whether a casting website is kosher. Back Stage, LA Casting, Actors Access, and the Screen Actors Guild have sites that offer these services.
There are ways to determine legitimacy. "Generally, people don't pay to put their own stuff on, and people don't have to pay to look," says Henderson. "But if you want to post casting jobs, you're paying. So it's revenue-based, but it's not the consumer who's paying to look for the opportunity of getting a job. That's where it becomes a scam: when you have to pay to get a job."
On BackStage.com, actors pay monthly subscription fees of $12.95–$16.95 to post unlimited résumés, headshots, and reels; search and submit to notices; and access all the website content; casting directors are charged a fee for posting notices but are not charged to look through actors' profiles.
The phrase "Hollywood scam artist" usually evokes the image of a seedy shyster, wooing naive starlets with promises of stardom. In reality, sophisticated scammers are much harder to identify. "You can't tell if a person's lying or not," says Henderson. "The really good guys look like the person you would invest your life savings with. You believe them, and they have that air of authority and integrity. And really they're just a psychopathic narcissist that will take your last dollar."
DeSando says managers or agents who charge up front for representation are to be avoided. The Advance-Fee Talent Services Law in the California Labor Code regulates the conditions under which agents can charge an advance fee, defined as "any fee due from or paid by an artist prior to the artist obtaining actual employment as an artist…." The law doesn't cover managers, and scammers have found numerous ways to circumvent the law.
DeSando, who has seen actors take out loans to pay advance fees, recommends you don't work with representatives who take money from you directly, adding, "That doesn't mean you're not going to get hit, because you could go to a manager who sends you to a photographer and they have a kickback situation."
Henderson says a good way to tell whether an agent or manager is getting kickbacks from a photographer, acting teacher, or other service provider is to examine how they're connected to each other. Is the photographer related to the agent? Is the acting studio owned by the manager who recommends it? "The way you make the distinction is by making sure there's a degree of separation between the people you're paying the money to and the people who are supposedly going to make the opportunity for you," Henderson notes. Another warning sign is if the talent rep insists you use a particular entity.
Sadly, actors have lost much more than money to people posing as industry pros. Two years ago, Victor Paleologus was convicted of the 2003 murder of 21-year-old actor Kristine Johnson, who disappeared after Paleologus approached her in the Century City Shopping Center and offered her an audition for a part in a James Bond film. Her body was found more than two weeks later. Six actors testified at Paleologus' trial that they had also been lured by him with promises of auditions.
Officer Eugene Arreloa of the Los Angeles Police Department writes to Back Stage via email, "The caution signs should go up once someone on the street approaches you and begins the sales pitch. The well-prepared person seeking to pursue a career in the entertainment field should make all efforts to research established agencies."
The rule of thumb for aspiring actors is to be wary of individuals or services offering shortcuts to fame. A successful acting career is usually the result of years of hard work. "You just have to wait your turn," says DeSando. "In the meantime, you just work your little tail off doing all the nonunion and crappy work until you get enough of a buzz going."