The Los Angeles Unified School District was shaken Wednesday as federal agents raided the home and office of Superintendent Alberto Carvalho. The investigation, shrouded in secrecy, appears to center on a collapsed multimillion-dollar artificial intelligence contract and potential conflicts of interest.
At the heart of the matter is a $6 million deal Carvalho awarded to education technology firm AllHere, with an initial $3 million payment made upfront. Simultaneously with the raids on Carvalho’s properties, agents searched the Miami home of Debra Kerr, a former AllHere salesperson, according to reports.
Kerr’s connection to Carvalho stretches back to his previous role leading Miami-Dade County Public Schools, suggesting a long-standing relationship now under intense scrutiny. Federal officials have confirmed the searches but remain tight-lipped about the specifics, citing sealed warrants.
The AI project, dubbed “Ed,” was intended as a chatbot to address student challenges like absenteeism. However, it imploded in 2024 following accusations that AllHere’s founder, Joanna Smith-Griffi, embezzled funds. Concerns about data privacy and reports from whistleblowers further contributed to the project’s downfall.
Smith-Griffi now faces serious charges including securities fraud, wire fraud, and identity theft, painting a picture of a company riddled with financial irregularities. Kerr, in court filings related to AllHere’s bankruptcy, claims she is owed substantial commissions for her role in securing the lucrative LAUSD contract.
Sources indicate the federal investigation is broadly focused on financial issues, with Carvalho as the primary target, not the school district itself. LAUSD officials have stated they are fully cooperating with the ongoing inquiry.
Carvalho, who leads the nation’s second-largest school district serving approximately 400,000 students, was recently reappointed to his position through 2025. His tenure in Los Angeles follows 14 years at the helm of Miami-Dade County Public Schools.
This isn’t the first time questions have been raised about Carvalho’s financial dealings. In 2020, he facilitated a $1.57 million donation to a nonprofit he founded from a company vying for a district contract.
That donation, intended for teachers, ultimately funded an online learning program that quickly proved problematic and was abandoned. While an internal investigation found no policy violations, it acknowledged the situation created an “appearance of impropriety,” leading to calls for the funds to be returned.
The latest raids represent a significant escalation of scrutiny for Carvalho, casting a shadow over the Los Angeles Unified School District and raising serious questions about the oversight of its contracts and leadership.
The unfolding investigation promises to reveal a complex web of relationships and financial transactions, potentially reshaping the landscape of one of the nation’s most influential school systems.
