LAUSD superintendent Alberto Carvalho investigated by FBI amid $6M AI contract

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 that involved a potential conflict of interest.

Alberto Carvalho had previously awarded a $6 million contract to education technology company AllHere, paying $3 million up front.

A former salesperson who worked for the firm also had his Miami property raided on the same day as Carvalho, according to public records. cited Los Angeles Times article. The woman, Debra Kerr, reportedly had close ties to Carvalho during his time with Miami-Dade County Public Schools.

Spokesman Jim Marshall approved local media told the Miami Herald that “we searched a residence in Southwest Ranches today as part of this matter and have since cleared the scene.”

In 2023, Carvalho signed a contract with AllHere to develop an artificial intelligence chatbot called “Ed” designed to help solve student problems such as absenteeism.

It collapsed in 2024 after its founder, Joanna Smith-Griffi, was accused of embezzling funds due to data privacy risks and whistleblower concerns. He was later charged with securities fraud, wire fraud and identity theft.

Kerr also claimed in AllHere’s bankruptcy court filings that the company owed him kickbacks for helping secure its deal with LAUSD. based on education-focused debut The 74.

While federal officials confirmed the search warrants were issued Wednesday, they declined to disclose the nature of the investigation and said the warrants remained sealed.

Federal officials are seen carrying cardboard outside a home in California. (KTTV)

But sources told the LA Times that the investigation falls into the broad category of financial issues and that the raid is focused on Carvalho rather than the California school district.

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LAUSD released a statement saying the district is fully cooperating with federal authorities.

“The LAUSD Board of Education recognizes that today’s news raises questions in our school communities,” he said.

“The board’s priority remains to ensure that our students, families, and staff experience a safe and welcoming learning environment. Teaching and learning continue in our schools. Los Angeles Unified remains focused on our responsibility to serve students and our families.”

The superintendent has led the nation’s second-largest school district since 2022, overseeing the education of nearly 400,000 students. He was also unanimously reappointed in September 2025.

He spent 14 years in leadership before moving to California. Miami‑Dade County Public SchoolsThe nation’s fourth largest school district.

Alberto Carvalho, superintendent of the Los Angeles Unified School District, has his home in San Pedro, California. (KTTV)

Wednesday’s raids mark the latest controversy to rock Carvalho.

In 2020, he helped secure a $1.57 million donation from the Miami Herald, a company under contract with the district. reported.

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FBI agents appear to be executing a search warrant on a San Pedro home tied to Alberto Carvalho. (KTTV)

The funds reportedly went to a nonprofit educational institution he founded, and the company’s trouble-plagued online learning program was quickly canceled as a result.

The outlet said in June 2021 that the school’s inspector general determined that the donation, which was intended to benefit teachers, did not violate any policies but created “the appearance of impropriety.” The foundation was later asked to return the funds, which were reportedly distributed as $100 gift cards to teachers.

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