The Los Angeles Unified School District (LAUSD) is facing a major crisis following FBI raids at the home of Superintendent Alberto Carvalho and district headquarters on Wednesday. The FBI also searched a location near Miami, Florida.
Investigation Focuses on AllHere
Although federal authorities have not released details about the investigation, a source with knowledge of the matter indicated the probe centers on AllHere, an education technology company whose founder was charged with fraud in 2024. Law enforcement sources stated the investigation specifically involves Carvalho and falls under the broad category of financial issues.
The LAUSD Board of Education scheduled a closed-session meeting Thursday to discuss “Public Employment: General Superintendent of Schools.” The district stated it is cooperating with the investigation.
AI Chatbot Deal a Previous Setback
The investigation comes after a previous setback during Carvalho’s tenure involving AllHere. In 2024, Carvalho approved a $3 million deal for an AI chatbot named “Ed,” intended to assist students, and families. Although, the technology was disconnected just three months after its release when AllHere collapsed and its founder, Joanna Smith-Griffin, was arrested and charged with securities fraud, wire fraud, and aggravated identity theft.
Public records link a Florida property searched by the FBI to Debra Kerr, a consultant who worked with AllHere and has a long-standing relationship with Carvalho dating back to his time as superintendent in Miami. Kerr has claimed in court documents that AllHere owes her $630,000.
Frequently Asked Questions
What prompted the FBI raids?
The FBI raids are part of a federal investigation focusing on LAUSD Superintendent Alberto Carvalho, with the probe reportedly revolving around the education technology company AllHere, whose founder was charged with fraud in 2024.
What is the LAUSD’s response to the investigation?
LAUSD officials stated they were informed of the law enforcement activity and are cooperating with the investigation. The Board of Education scheduled a closed-session meeting to discuss “Public Employment: General Superintendent of Schools.”
What was the district’s experience with AllHere?
LAUSD entered into a $3 million contract with AllHere for an AI chatbot, “Ed,” which was discontinued three months after its release when the company collapsed and its founder was arrested on fraud charges.
As the investigation unfolds, it remains to be seen what impact these developments will have on the leadership and direction of the Los Angeles Unified School District.