LAUSD Superintendent Alberto Carvalho has long been under the microscope of federal agents for his alleged wrongdoings, according to a new report.
The investigation that led to last week’s dramatic FBI raids on Carvalho’s home and office began more than a year ago, according to new reporting by the Los Angeles Times. The whole thing was reportedly sparked by a referral from New York prosecutors working a criminal fraud case tied to AllHere, the tech firm that struck a $6 million deal with LAUSD to develop an AI chatbot.
The chatbot, dubbed “Ed”, was billed by Carvalho as a groundbreaking communications tool for families. It was never fully deployed.
Sources familiar with the probe told The Times that prosecutors in the AllHere case uncovered evidence related to Carvalho and passed it along to authorities in California .
That referral ultimately triggered last week’s FBI searches of Carvalho’s San Pedro home, his downtown LAUSD office, and a Miami residence tied to the widening criminal inquiry.
Carvalho, 61, has not been seen or heard from since.
According to the Los Angeles Times, 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, 33, was arrested in 2024 and charged in Manhattan federal court with securities fraud, wire fraud and aggravated identity theft.
Federal prosecutors allege that from 2020 until the company’s collapse in June 2024, Smith-Griffin inflated AllHere’s revenue, customer base and cash reserves to secure nearly $10 million from investors — and attempted to raise an additional $35 million.
According to the indictment, she told investors the company generated $3.7 million in revenue in 2020. Prosecutors say the real number was closer to $11,000. They also allege she falsely claimed contracts with major school districts that did not exist.
When discrepancies surfaced, prosecutors say she created a fake email account impersonating the company’s outside financial consultant to send fraudulent financial documents to investors.
U.S. Attorney Damian Williams said Smith-Griffin “orchestrated a deliberate and calculated scheme to deceive investors.” She has pleaded not guilty.
Federal agents didn’t stop in Los Angeles.
Along with searching Alberto Carvalho’s San Pedro home and his office at Los Angeles Unified School District headquarters downtown, the FBI also executed a search at the Florida home of Debra Kerr, a salesperson whose clients included AllHere.
Kerr had longstanding professional ties to Carvalho dating back to his tenure leading Miami-Dade schools.
The school board has ducked into closed session three times since the FBI raid rocked the district’s top office, scrambling to contain the political and public fallout.
Trustees voted 7-0 to place Carvalho on indefinite leave and elevate longtime insider Andres Chait to acting superintendent on Friday.
Monday marked Chait’s first time presiding as acting chief.
Chait opened with calm, carefully measured remarks aimed at cooling nerves across the nation’s second-largest school system.
“As acting superintendent, my top priority is to keep Los Angeles Unified steady and focused on our core mission,” he said, stressing safety, continuity and uninterrupted learning. “I know transitions can create uncertainty, but our district is strong.”
Public comment was brief but tense. Parents raised concerns about safety, accountability and transparency as the district faces one of the most serious upheavals in its history.
“Are you going to empower him to do his job?” one speaker demanded. “Which one of you is going to take responsibility?”
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