NY fraud tip spurred FBI probe of LAUSD Superintendent Alberto Carvalho, report
The recent FBI raids on LAUSD Superintendent Alberto Carvalho’s home and office have brought to light a long-standing federal investigation into his alleged wrongdoings. According to a report by the Los Angeles Times, the investigation began over a year ago, triggered by a referral from New York prosecutors working on a criminal fraud case involving AllHere, a tech firm that had a $6 million deal with LAUSD to develop an AI chatbot called “Ed”.
The chatbot, which was touted as a groundbreaking communications tool for families, was never fully deployed. The investigation into Carvalho was sparked when prosecutors in the AllHere case uncovered evidence related to him and passed it along to authorities in California. This led to the FBI searches of Carvalho’s San Pedro home, his downtown LAUSD office, and a Miami residence linked to the widening criminal inquiry.
Carvalho, 61, has been notably absent since the raids. Grand jury subpoenas have been issued to individuals in Miami-Dade County Public Schools seeking records from the district’s inspector general and the former Foundation for New Education Initiatives, a nonprofit Carvalho oversaw while leading the district.
AllHere’s founder, Joanna Smith-Griffin, was arrested in 2024 and charged with securities fraud, wire fraud, and aggravated identity theft. Prosecutors allege that she inflated the company’s revenue, customer base, and cash reserves to secure millions from investors. When discrepancies arose, she allegedly created fake documents to deceive investors.
In addition to searching Carvalho’s properties, the FBI also executed a search at the Florida home of Debra Kerr, a salesperson with ties to AllHere and Carvalho. The school board has placed Carvalho on indefinite leave and appointed Andres Chait as acting superintendent.
Chait, an LAUSD insider, made his first appearance as acting chief, emphasizing safety, continuity, and uninterrupted learning. Parents expressed concerns about safety, accountability, and transparency during a tense public comment session. The district is facing one of the most serious upheavals in its history, and Chait aims to keep Los Angeles Unified steady and focused on its core mission.
