In 2005, Jack Phoummarath, an 18 year old pledge at the University of Texas, died from alcohol poisoning in what was described by his family as a hazing incident. Three former leaders of the chapter pled no contest. A settlement was reached with the fraternity for 4.2 million. The fraternity organization did not have insurance, and was unable to pay the entire settlement.
In 2013 Lambda Phi Epsilon was banned from San Francisco State University after the death of 18 year old pledge Peter Tran. The University determined that the death was alcohol related from a hazing incident.