PHOENIX -- A Valley-based acting school agreed to pay the Connecticut attorney general $25,000 and issue refunds to customers as part of a settlement, authorities said.

"THE" and related company Academy of Cinema and Television claim they can put children in front talent agents and Hollywood insiders who discover new stars.

Mesa resident Julie Bergman said her son hoped he had found the path to stardom when he auditioned for one of THE's events, which was set to start in Connecticut on Saturday.

"(It cost) $1,900 for him to be there," she said. "$1,000 for the registration, which was non-refundable no matter what, and then $895 for me to be there."

On Monday, THE agreed to grant refunds to any of the participants who wanted to cancel their trip to the Connecticut event.

According to a statement from the company, the agreement was voluntary on THE's part. The statement also said the attorney general's entire investigation centered on a few lines in the contracts with parents that should have been in bold print.

• Read: Statement From THE Regarding Connecticut Settlement (.pdf)

In March, a 5 Investigates report raised questions about THE and ACT. A former employee, who wished to remain anonymous, said the companies' goal was to sign children up for expensive acting classes and competitions.

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

Bergman said that's what she started to believe after she spent $2,000 on acting classes for her son.

"I thought he was going to get real, genuine entertainment knowledge…tips on how to do certain things, which he did," she said. "But it really wasn't anything he hadn't already learned in drama class in high school."

On Tuesday, Bergman called THE to cancel her child's spot at Connecticut event and requested her refund.