FBI Investigation of LAUSD's Carvalho Linked to AI Firm Fraud

Mar 5, 2026, 2:44 AM

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The FBI's scrutiny of Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho is rooted in a referral from New York prosecutors investigating a fraud case tied to AllHere, a tech firm that previously held a contract with the district. This connection became public only recently, following a raid on Carvalho's home and office by federal agents.

The investigation reportedly began over a year ago, indicating the seriousness of the allegations against AllHere, which developed a chatbot intended for LAUSD. The chatbot, named "Ed," was positioned as an innovative educational tool but was never fully deployed, possibly due to the concerns surrounding the company's operations and financial practices.

As part of the ongoing inquiry, grand jury subpoenas have been issued to individuals from Miami-Dade County Public Schools, where Carvalho served as superintendent prior to his arrival in Los Angeles in 2022. These subpoenas are seeking records related to Carvalho's oversight of the former Foundation for New Education Initiatives, which has since been renamed the Miami-Dade County Public Schools Foundation. A prior investigation by the Miami-Dade schools inspector general found that a $1.57 million donation, arranged by Carvalho, raised ethical concerns despite not being deemed illegal.

The federal investigation has not publicly identified any specific targets, nor has it formally accused Carvalho of any wrongdoing. However, sources indicate that evidence obtained from the AllHere fraud case has been passed to California prosecutors, suggesting that the inquiry is serious and potentially extensive.

Joanna Smith-Griffin, the founder and former CEO of AllHere, was arrested in 2024 and faces multiple charges, including securities fraud and wire fraud. Prosecutors allege she defrauded investors of nearly $10 million, using some of the funds for personal expenses, such as a down payment on a house and wedding costs. She has pleaded not guilty to these charges.

In the wake of the FBI raid, the LAUSD board convened several closed-door meetings to discuss the ramifications for Carvalho, a prominent figure in K-12 education. Following these discussions, the board unanimously voted to place Carvalho on indefinite leave and appointed Andres Chait as the acting superintendent. Chait has emphasized his commitment to maintaining stability and continuity within the district during this uncertain time.

Chait, who has been with LAUSD for 27 years, stated, "Our schools will remain places of safety, consistency, and opportunity. Teaching and learning will continue uninterrupted, and our plans and priorities will move forward". His appointment has been generally well-received, as stakeholders in the community express the need for steady leadership amidst the investigation's fallout.

As the situation develops, both Carvalho and Smith-Griffin have not made public comments regarding the ongoing investigations. Meanwhile, the LAUSD community is watching closely, as the implications of these investigations could significantly impact the district's leadership and strategic direction in the near future.

The investigation into Carvalho is part of a broader scrutiny of ethical practices in educational leadership and the intersection of technology in school districts. Stakeholders are eager to see how LAUSD navigates this challenging period and whether it will alter its approach to partnerships with tech companies moving forward.

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