The federal probe into the Los Angeles Unified School District’s superintendent, which involved searches of both his home and school offices, appears tied to a failed multimillion-dollar AI contract, possibly involving conflicts of interest.
Alberto Carvalho previously inked a $6 million deal with AllHere, an education technology firm, which included an upfront payment of $3 million. Interestingly, a former salesperson from the company had his property in Miami searched on the same day as Carvalho. Records show that Debra Carr, the former employee, shared a close relationship with Carvalho during his time leading Miami-Dade County Public Schools.
Public Relations Officer Jim Marshall confirmed that authorities executed a search warrant in Southwest Ranches as part of the investigation, though details about the case remain sparse. It was noted by the Los Angeles Times that the investigation concerned financial matters and primarily focused on Carvalho rather than the school district itself.
In 2023, Carvalho had partnered with AllHere to create “Ed,” an AI chatbot aimed at tackling issues like absenteeism among students. But the venture floundered in 2024 following accusations of embezzlement against founder Joanna Smith Griffey and concerns over data privacy, which ultimately led to her facing charges related to securities fraud and identity theft.
Interestingly, Carr claimed in AllHere’s bankruptcy proceedings that she was owed a fee for her role in securing the LAUSD contract. On Wednesday, federal authorities confirmed executing a search warrant but were tight-lipped about the specifics since it remains sealed.
LAUSD has stated that they’re fully cooperating with federal officials. In their announcement, they acknowledged that the news could raise concerns among the school community, but emphasized that their priority is ensuring a safe learning environment for students and families.
Carvalho has been leading the nation’s second-largest school district since 2022, with a student population of about 400,000, and was reappointed to his position in September 2025. Before this, he held a prominent role in Miami-Dade County Public Schools, which ranks as the fourth largest school district in the U.S.
This latest search adds to Carvalho’s history of controversies. In 2020, he facilitated a $1.57 million donation from the Miami Herald, which was associated with a contract with the district. The funds were intended for an education nonprofit he started, yet it faced challenges and was shut down shortly after launch. While a school inspector general later ruled that the donations created an appearance of fraud, they concluded no official policies were violated.
