Dubspot CEO resigns amid reports of fraud, provides statement
Dubspot was once hailed as a premier institution for aspiring DJs and producers to help kick their careers into action. However, academy’s reputation was swiftly burned to the ground once numerous students and teachers went public with claims regarding how the school had defrauded them.
Many attendees claimed to have been scammed by the school, having paid for courses far in advance and coming to find empty classrooms with no teacher and, at times, not enough equipment. One student from Austria reported that when she’d flown out to the New York location for class, she’d found the place in utter disarray and was even told rudely to leave the premises. Other reports even alleged that teachers hadn’t been present because they themselves haven’t been paid.
Since the firestorm arose, CEO Dan Giove has officially stepped down from his position. Apologizing profusely by way of a written statement, the executive announced that he would be stepping into a support role and ensuring that “all courses [will be] refunded or continued online.” Giove pointed out that expanding to LA turned out to be an overly aggressive decision, and paired with other unexpected burdens such as finding a brand new location in Manhattan, ended up being too much of a financial hit for Dubspot to retain its once high reputation.
A new interim director will be announced soon, according to Giove, and silent investors have also been brought on board to help reverse Dubspot’s troubled financial situation.
Read Giove’s full statement below:
I write this letter today to apologize. These past several months I have let you, our community, our staff, our partners and extended family down. I have not been the person that I know myself to be and have been trying to get both my physical and mental health in order. I have been unresponsive to emails, calls, text messages, and social media. For this, and for anything else I have done to disappoint you, I am truly sorry.
When I started Dubspot 11 years ago, I had a vision of building a place where I could learn to create music while at the same time being around like-minded individuals who were also trying to do the same. I never could have imagined the worldwide success that Dubspot would become over the years that followed. We have had so many happy students since 2006 who have realized their dreams and I am sorry this wasn’t the case for many of you.
There are times when companies go through tremendous challenges and misfortunes. That time began for us about 3 years ago when I decided to open Dubspot LA. To be blunt, and looking back on things, I now realize that Dubspot was undercapitalized and without enough infrastructure in place to open the new LA school. From that point on, I have had a very difficult time sustaining and at the same time I have made some poor decisions.
More recently, in June of last year, we were kicked out of our home on 14th street because the building was sold. We tried to move as quickly as possible to find our new space and did so. But after almost a year of struggling, we weren’t able to afford the rent, even after many attempts to negotiate with our landlords.
Over the past several months, I have been doing everything I can think of to save the company and make things right. Contrary to some reports, we stopped taking registrations for NYC and LA Mid-March once we realized there was no way to survive in the physical locations. We have issued many refunds over the last few months and will continue to do so. Fortunately, I have found silent investors to help turn things around and return Dubspot to the successful business it once was.
To that end, the core teachers of Dubspot have all agreed to a going forward financial arrangement and our online courses are now operating as usual. We have a small active staff committed to answering the phones, responding to emails, live chat on our website and we are dedicated to insuring that each and every student who has paid for classes will receive one on one consultations in order to best fulfill the classes that were paid for. We are also actively restructuring and looking for new studio space so that in addition to our online presence, those of you that want to come to live classes will be able to do so.
I have been asked by my investors to formally step down from CEO of Dubspot for the foreseeable future to focus on my health and the birth my son. I will be assisting in a support role and will focused on making sure all students are either refunded or continue online. In the next few weeks, we will be announcing the new interim Director of Dubspot. Please stay tuned in the coming days for very important upcoming announcements about Dubspot and our students. In the meantime, please email us at email@example.com, or call us at 1-855-9-DUBSPOT, so we can address any other questions or concerns. Or please email me directly here.