Lawsuit says Chicago Basketball Academy defrauds families of thousands

A private Chicago high school pegged as a basketball academy is being sued for fraud for allegedly refusing to refund thousands of dollars in tuition and fees to parents whose kids never received the advertised education.

Cook County State’s Attorney Kim Foxx filed the lawsuit Thursday against the Chicago Basketball Academy, which closed two weeks into the 2015-16 school year, her office announced.

The suit names the Academy; L3C, the company which ran it; and the school’s founder and chief executive, Damond L. Williams, the state’s attorney’s office said.

Foxx alleges parents who enrolled their kids at the academy, listed as operating at 612 N. Wells in River North, paid between $2,100 and $2,600 in application, tuition and other fees for educational and athletic services.

But when the time came for students to learn, classrooms hadn’t been furnished; teachers hadn’t been paid; textbooks and instructional materials hadn’t been bought; and the teaching and coaching staff needed to execute the curriculum hadn’t been hired, the state’s attorney’s office said.

Two weeks into the school year, teachers dismissed their students, the lawsuit said. Despite kids never receiving an education or basketball training, Williams and the school denied parents’ requests for a refund.

The suit alleges Williams, a former professional basketball player in Asia, knew the academy had failed to get the financial investment needed to build and operate the school, and implement the educational and athletic programs.

Williams also allegedly sent fake financial award letters to parents and told them the school was approved by the Illinois State Board of Education, when it wasn’t, the state’s attorney’s office said.

The “deceptive and unlawful practices” are ongoing, including the academy inaccurately advertising that it had partnered with local sports businesses to give students an innovative education, according to the suit.

The lawsuit seeks refunds for the families, nullification of all contracts, and civil penalties of up to $50,000.

Families who feel they may have been victims of fraud are asked to contact the state’s attorney’s Consumer Fraud Unit at (312) 603-8700 for more information.