Dubspot CEO Resigns Amid Allegations of Fraud, Promises Refunds
As we reported earlier this week on EDM.com, well known music production and DJ’ing school, Dubspot, was under fire with accusations of fraud and not paying instructors. These accusations were brought up by over 50 students at the school and even instructors like DJ Endo have spoken up about their issues with the school and its recent scandal.
When the news broke, many of us knew that this was only the beginning of a potentially ugly saga for the school and its accusers to go through. After only a few days of these allegations being brought to light, we have a major update in the case. Dan Giove, the CEO of Dubspot and frequent target for the accusations, has resigned as CEO of Dubspot.
Giove was accused of taking money without providing classes that were paid for and not paying instructors for their work with the school. It was clear that Mr. Giove had made his fair share of enemies at the school and his resignation seemed like the only rational thing to do. In an email sent to students and staff at Dubspot, Giove explains his side of the story and what he thinks caused the program to go sideways.
Giove’s official statement-
“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.”
He goes on to say that even though he is no longer the CEO, he will stay with the company to assist in the students getting their refunds while investors look for an interim director to run the school.
“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 firstname.lastname@example.org, or call us at 1-855-9-DUBSPOT, so we can address any other questions or concerns. Or please email me directly here.”
While Giove goes into great detail about his struggles and the effort to keep the school going, something still seems off about the whole situation. Don’t be surprised if we hear more major news regarding Dubspot in the near future.
H/T: Dancing Astronaut