Executive Summary
- LAUSD Board places Superintendent Alberto Carvalho on indefinite leave following FBI raids.
- Andres Chait named acting superintendent, pledging operational continuity.
- Federal probe links to New York fraud case involving failed AI vendor AllHere.
- AllHere founder charged with securities and wire fraud; Miami-Dade schools also subpoenaed.
Andres Chait has been appointed as the acting superintendent of the Los Angeles Unified School District (LAUSD) after the school board voted unanimously to place Superintendent Alberto Carvalho on indefinite leave following FBI raids on his home and office. The leadership change comes as federal authorities investigate allegations connected to a defunct technology company that had secured a contract with the nation’s second-largest school system.
The investigation, which sources indicate originated from a referral by New York prosecutors, focuses on a criminal fraud case involving AllHere, an educational technology firm commissioned to develop an artificial intelligence chatbot named “Ed.” Federal agents executed search warrants at Carvalho’s downtown Los Angeles office and his San Pedro residence on Wednesday. Simultaneously, the FBI searched a Florida property belonging to Debra Kerr, an education consultant with professional ties to Carvalho dating back to his tenure in Miami.
According to sources familiar with the inquiry, the probe has expanded beyond Los Angeles. Grand jury subpoenas have been issued to the inspector general of Miami-Dade County Public Schools and the Foundation for New Education Initiatives, a nonprofit organization Carvalho oversaw during his time as superintendent in Miami. While no specific allegations against Carvalho have been formalized by prosecutors, the investigation is examining the financial and contractual relationships involving the collapsed AI vendor.
Court filings reveal that Joanna Smith-Griffin, the founder and former chief executive of AllHere, was charged in 2024 with securities fraud, wire fraud, and aggravated identity theft. Prosecutors allege Smith-Griffin fraudulently obtained nearly $10 million from investors and misappropriated funds for personal expenses, including a down payment on a home. The AI tool “Ed,” championed by Carvalho as a revolutionary educational aid, was withdrawn from service following the company’s financial implosion.
Following the board’s 7-0 vote to place Carvalho on leave, Chait, a 27-year veteran of the district, addressed the community, pledging continuity in district operations. Speaking before a closed session regarding labor negotiations, Chait emphasized that his primary focus would be maintaining stability for students and staff. “My top priority is to keep Los Angeles Unified steady and focused on our core mission: educating, supporting and caring for the students of Los Angeles,” Chait stated.
Governance and Investigative Outlook
The swift leadership transition at LAUSD highlights the significant operational disruption caused by the intersection of federal law enforcement actions and public education administration. As the Department of Justice and the U.S. Attorney’s Office scrutinize the procurement processes surrounding the failed AI initiative, the district must navigate the complexities of a multi-jurisdictional fraud investigation while ensuring day-to-day educational services remain unaffected. The scope of the subpoenas suggests a broad inquiry into potential conflicts of interest spanning multiple states.
It is important to note that all individuals mentioned in connection with this investigation, including Alberto Carvalho, Debra Kerr, and Joanna Smith-Griffin, are presumed innocent until proven guilty in a court of law.
