The federal investigation into the Los Angeles Unified School District superintendent, whose home and school office were raided Wednesday, may be tied to a failed multimillion-dollar AI school contract involving a potential conflict of interest.
Alberto Carvalho previously awarded a $6 million contract, paying $3 million up front, to education technology company AllHere.
A former salesperson employed by the firm also had her Miami property raided the same day as Carvalho, according to public records AI chatbot called "Ed," designed to help address student issues such as absenteeism.
It ultimately collapsed in 2024 after its founder, Joanna Smith-Griffi, was accused of embezzling funds amid data privacy risks and whistleblower concerns. She was later charged with securities fraud, wire fraud and identity theft.
Kerr further claimed in AllHere's bankruptcy court filings that the company owed her commissions for helping secure its deal with LAUSD, Miami‑Dade County Public Schools, the nation’s fourth-largest school district.
Wednesday’s raids mark the latest controversy to engulf Carvalho.
In 2020, he helped secure a $1.57 million donation from a company that had a pending contract with the district, the Miami Herald distributed to teachers as $100 gift certificates.