A private letter addressed to Los Angeles Unified School District Superintendent Alberto Carvalho prior to his resignation raises serious concerns for the beleaguered school board. It outlines several possible grounds for his termination, hinting at the turmoil leading up to his unexpected exit.
This letter mentioned that Carvalho could be fired “for just cause” due to multiple alleged ethics violations. Notably, there were claims that a contractor, linked to an ongoing FBI investigation, covered the expenses for his trip to Washington, D.C., and that he neglected to disclose certain financial interests during required state filings.
The backdrop to this situation includes an FBI raid on Carvalho’s home and office on February 25, part of a federal inquiry tied to the education tech startup AllHere.
Just two days after the raid, the school board placed Carvalho on paid administrative leave. Up until that point, there was no indication publicly suggesting they were pushing for his resignation.
The letter flagged at least three instances where Carvalho reportedly benefited financially without proper disclosure. These included a trip to the White House in August 2023, which sources claimed was financed by AllHere, tickets to events at Dodger Stadium, and attendance at an educational conference in Denver.
Concerns also emerged regarding Carvalho’s apparent personal use of district vehicles and drivers, which were strictly intended for work-related tasks.
Insiders indicated that these alleged actions could justify firing him, as the financial benefits had not been disclosed in the required documentation.
Initially, Carvalho was seeking an exit package exceeding $1 million, in addition to legal fees that the school district would cover. In response, the district offered several months of salary if he withdrew his compensation claim, but then sent a confidential letter alerting him about potential grounds for termination.
The dynamics of his contract were crucial here; if he was terminated for cause, he wouldn’t receive severance, whereas a termination without cause would guarantee him at least a year’s salary plus compensation for unused vacation time.
Carvalho’s legal team contended that the allegations did not warrant dismissal, arguing that there were mitigating factors for each issue cited.
When publicly resigning, Carvalho articulated that his priority was for the district to maintain its focus on students, free from distractions. The federal investigation is heavily scrutinizing his connection to AllHere, the now-defunct tech firm responsible for creating an AI chatbot known as “Ed.”
Carvalho unveiled this chatbot during his annual State of the Superintendent’s Address on August 4, 2023, claiming it would revolutionize personalized education. Shortly after that, he attended a White House cybersecurity summit, asserting he paid for his travel expenses.
At that point, AllHere had secured contracts valued at up to $6.2 million, completing around $3 million in work before declaring bankruptcy less than a year later.
A spokesperson for Carvalho noted that district officials had been aware of AllHere’s contributions towards his work-related travel and, after an examination following the company’s bankruptcy in 2024, determined no further action was necessary.
Carvalho’s latest four-year contract became effective merely 11 days prior to the FBI’s search, with an annual salary of $440,000, which includes $50,000 for superannuation.
