FBI Investigation of LAUSD Superintendent Carvalho Linked to AI Firm Fraud

Mar 4, 2026, 2:48 AM
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The recent FBI investigation into Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho began with a referral from New York prosecutors examining a fraud case involving a technology company that had a contract with LAUSD. This company, AllHere, reportedly went bankrupt, prompting scrutiny of its financial dealings and connections to Carvalho's administration.
The investigation gained public attention following an FBI raid on Carvalho's home and office. Sources indicate that the inquiry has been ongoing for more than a year, initiated by evidence gathered during the New York fraud case. This evidence was subsequently shared with California prosecutors, indicating a broader concern about potential misconduct associated with Carvalho's tenure in Miami-Dade County Public Schools prior to his appointment in Los Angeles in 2022.
Grand jury subpoenas have been issued in Miami-Dade, seeking records from the district's inspector general and the former Foundation for New Education Initiatives, which Carvalho oversaw while in Florida. Notably, the foundation, now known as the Miami-Dade County Public Schools Foundation, had previously been scrutinized for a $1.57 million donation that raised ethical concerns, although it was ultimately deemed not to violate any policies.
At the center of the investigation is AllHere, a firm that developed an AI chatbot intended to enhance educational interactions within LAUSD. The chatbot, known as "Ed," was described by Carvalho as a revolutionary tool for education, yet it was never fully deployed before being withdrawn from service. Reports suggest that at least one individual connected to AllHere is cooperating with federal prosecutors, further complicating the situation for Carvalho.
The founder of AllHere, Joanna Smith-Griffin, is facing serious charges including securities fraud and wire fraud, alleged to have defrauded investors of nearly $10 million. Prosecutors claim that some of these funds were misappropriated for personal expenses, including a down payment on a house and wedding costs. Smith-Griffin has pleaded not guilty to the charges, and her case is ongoing.
In response to the FBI's actions, the LAUSD board has convened multiple closed-door meetings to address the implications of the investigation. Following the raid, the board voted unanimously to place Carvalho on indefinite leave, appointing senior administrator Andres Chait as the acting superintendent. Chait has assured the community that the district will continue its focus on students and maintain stability during this period of uncertainty.
Chait, who has spent 27 years in various roles within LAUSD, emphasized his commitment to the district's mission: "Our schools will remain places of safety, consistency, and opportunity." He has expressed his intention to keep educational priorities on track, despite the leadership transition and the ongoing investigation into Carvalho's conduct.
As the situation unfolds, the LAUSD board's decision to term Chait as "acting superintendent" rather than "interim superintendent" suggests a cautious approach, leaving open the possibility of Carvalho's return depending on the investigation's outcomes. Community members have expressed mixed reactions, with some supporting Chait while voicing concerns over school safety issues that have lingered under his previous oversight role.
The investigation's roots in a New York fraud case underscore the interconnectedness of educational policy and business practices within the tech industry, particularly as schools increasingly adopt advanced technologies. As the FBI continues its investigation, the implications for LAUSD and its leadership remain uncertain, spotlighting the challenges faced by education administrators navigating complex relationships with external vendors and technology firms.
The ongoing situation is a stark reminder of the scrutiny faced by public education leaders, emphasizing the need for transparency and accountability in all dealings that impact the education sector. As the LAUSD community watches the developments closely, the focus will remain on ensuring that students continue to receive the education and support they deserve amid these troubling revelations.

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