PHOENIX -- A multi-city hidden camera investigation is raising some serious questions about a Phoenix company that claims it can put children in front of Hollywood insiders who discover the stars.

The Academy of Cinema and Television and related company "The" hold auditions across the country in cities like Cleveland, Atlanta and Denver.

Most of the attendees find out about the events from radio or television commercials that say only 200 children and teens will be accepted, and those lucky enough to reserve a spot will get to audition for a talent agent or casting director.

Nevertheless, a former employee who asked his name not be revealed told 5 Investigates a different story.

"We would be booking for 1,400 or 1,300" for a 200-person event, he said.

"We had (parents) hyped on the idea that this is a once-in-a-lifetime opportunity when their kid could come and audition in front of agents who represented kids of all types for TV shows, movies and commercials," he said.

He told 5 Investigates that the goal behind the auditions was to sign people up for expensive acting classes and competitions.

The cost of classes and competitions ranges from just under $2,000 to nearly $10,000.

"After a few classes -- what we found out was it was a very expensive babysitter," said one parent who declined to be identified.

George Gammon, the man in charge of the company, initially agreed to sit down with 5 Investigates for an interview; however, he backed out, saying his attorney told him not to because Gammon is suing another television station.

His publicist said he would answer written questions, so 5 Investigates e-mailed them, and received a letter from a Beverly Hills attorney threatening a lawsuit and criticizing the questions.

Reporters in other parts of the company have received similar responses.

Nevertheless, Gammon surprised reporters when he sent a prepared statement to CBS 5 News on Wednesday afternoon, hours before the report was set to air.

In it, he disagreed with the employee's claim that the company said events were limited to 200 people, yet booked more than 1,000 slots.

"(The number of people booked) all depends on the size of the venue, which can fluctuate up or down," Gammon wrote. "If an employee ever said that, it's because the venue could only hold that many people. Our employees who answer calls stick to a script ... there is no mention about any specific number."

Nevertheless, the company's own commercial says events are limited to 200 people.

Additionally, Gammon said the school, bookers and instructors never made promises to students or their families about contacts they will make through The and ACT in the entertainment business.

"We offer students an opportunity to meet and be exposed to professionals they otherwise may never get a chance to meet," he wrote in the prepared statement. "All of our services are included, in writing, in our materials and provided to parents before they enroll their children."

Gammon also disputed the idea that the program is "a very expensive babysitter" that will take anyone willing to pay enough money.

"We are very selective. and the process is spelled out in the materials parents receive," he said. "We look for many things that make a successful student or participant, including talent, charisma, confidence, a unique look, positive energy, supportive parents and a strong personal desire to participate rather than just doing it to please a parent."

The company is suing a television station in Providence, R.I., for its report and reporting methods; however, the Connecticut attorney general has opened an investigation into the Phoenix-based company.