Federal authorities are reportedly investigating LA Unified Superintendent Alberto Carvalho due to his association with Joanna Smith Griffin, who is under scrutiny from the Justice Department for allegedly defrauding investors out of $10 million.
Carvalho, at the helm of the nation’s second-largest school district since 2022, became the central figure in an intense federal inquiry, which included surprising searches of his home, office, and the residence of former consultant Debra Kerr.
This investigation focuses on Carvalho’s interactions with All Here, an edtech startup founded by Smith Griffin at Harvard, which marketed AI tools to U.S. school districts claiming to enhance attendance and student involvement, according to sources familiar with the joint FBI and Justice Department probe.
Smith Griffin, known for her energetic personality, propelled All Here into the national spotlight from the Harvard Institute for Innovation. Unfortunately, her impressive trajectory changed drastically after her arrest in 2024 at the age of 33.
In a 2021 interview with Forbes, she expressed ambitious plans: “My goal for the next 12 months is to acquire land.”
While at the helm of LAUSD, Carvalho’s team approached Smith Griffin’s venture for a $6 million AI chatbot in 2024. However, that initiative was abruptly shelved, leading to the company’s eventual collapse.
Carvalho and Smith Griffin appeared at various events together to champion what he described as a “game changer” for public education.
Amidst this, prosecutors alleged that Smith Griffin misrepresented her chatbot’s clientele, falsely claiming contracts with major school districts like those in New York City and Atlanta, while concealing that the company generated only a few thousand dollars in revenue.
Things took a dramatic turn later that year when Smith Griffin faced multiple federal felony charges.
“Smith Griffin orchestrated a deliberate scheme to defraud investors and inflated the company’s financials to secure millions under false pretenses,” former U.S. Attorney Damien Williams stated during the announcement of her indictment.
“The law does not forgive those who distort financial realities for personal gain,” he added.
Prosecutors allege Smith Griffin managed to secure nearly $10 million from investors based on her fabrications and even sought an additional $35 million from private equity firms, although that attempt fell through.
Some of the proceeds were reportedly used for a down payment on a North Carolina home and wedding expenses, while attempts were made to conceal her alleged misdeeds, including creating a fake email account and sending bogus financial documents to a primary investor.
Facing charges of securities fraud and wire fraud, Smith Griffin could face significant prison time if convicted. Additionally, there’s an aggravated identity theft charge that carries a separate two-year penalty.
While Smith Griffin has not yet been convicted, she is reportedly in discussions with prosecutors about resolving her case.
Before her downfall, the ambitious tech entrepreneur was riding high on a wave of AI enthusiasm, making it onto Forbes’ 30 Under 30 list in a striking red dress and claiming that All Here had garnered a subscriber base of 2,000 schools across 15 states, each paying $2 per student annually.
Carvalho’s name does not appear in Smith Griffin’s indictment, and it remains uncertain if her reported settlement with federal prosecutors is linked to the recent raids at Carvalho’s home and office, as well as on Kerr, who facilitated All Here’s dealings with LA Unified.
Neither Carvalho nor Kerr has been charged with any crimes, and both did not respond to requests for comment.
Smith Griffin and her legal representative also have not replied to inquiries.
FBI agents conducted searches at Carvalho’s residence in Palos Verdes, seen carrying rifles and removing documents and other materials.
At this time, no arrests or charges have been made in connection with the investigation into Carvalho, who still holds his $440,000-a-year position overseeing approximately 400,000 students in Los Angeles public schools.
In light of these developments, some parents are demanding Carvalho’s removal, prompting the school board to convene a closed meeting to discuss his future.
