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FBI Probe of L.A. Schools Superintendent May Be Linked to $6 Million AI Deal

The federal investigation into Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho might be linked to a contract with a failed Artificial Intelligence (AI) company.

The case involves a possible conflict of interest, Fox News reported Friday, noting that Carvalho awarded the contract to AllHere, a tech company, “despite alleged close ties with former salesperson Debra Kerr.”

The company fell apart in 2024 when its founder, Joanna Smith-Griffi, was charged for embezzling money.

Carvalho had awarded AllHere a $6 million contract and paid $3 million of it to develop a chatbot for student purposes.

A Miami property belonging to Kerr was raided this week and the Fox report said Kerr “reportedly had close ties to Carvalho during his tenure leading Miami-Dade County Public Schools.”

ABC 7 reported Friday that LAUSD board members held a closed meeting about Carvalho on Thursday but did not reach a decision about his future with the district.

Some parents have demanded Carvalho resign and others want the entire board disbanded, per the New York Post, referencing the recent meeting that occurred after federal agents raided Carvalho’s home and office on Wednesday.

Parent Juan Megondi said, “If this investigation escalates, resign out of dignity — every single one of you.”

Federal Bureau of Investigation (FBI) agents executed search warrants at Carvalho’s home in San Pedro, his downtown office, and the home in Florida connected to his previous role with the Miami-Dade County Public Schools, KTLA reported Thursday.

Video footage shows FBI agents removing boxes from Carvalho’s home, and a CBS Los Angeles reporter noted the investigation “predates the Trump administration and is a probe into allegations that Carvalho may have received kickbacks from a business while still superintendent of the Miami school district.”

LAUSD is the second-largest school system in America, according to its website. The site also noted Carvalho is the longest-serving superintended in more than two decades.

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