LAUSD Superintendent Alberto Carvalho was investigated by the FBI amid a $6M AI contract
NEWNow you can listen to Fox News articles!
A federal investigation into the superintendent of the Los Angeles Unified School District, whose home and school office were raided Wednesday, may be tied to the school’s failed multibillion-dollar AI contract involving a conflict of interest.
Alberto Carvalho previously awarded a $6 million contract, paying $3 million upfront, to education technology company AllHere.
A former salesman employed by the company also raided his Miami property on the same day as Carvalho’s, according to public records cited by the Los Angeles Times. The woman, Debra Kerr, was reportedly close to Carvalho during her tenure as head of Miami-Dade County Public Schools.
Spokesman Jim Marshall confirmed to local media the Miami Herald that “we searched the Southwest Ranches residence today as part of this matter and have since cleared the scene.”
Superintendent Alberto Carvalho speaks during an event at LAUSD headquarters in downtown Los Angeles on October 30, 2025. (Genaro Molina/Los Angeles Times via Getty Images)
In 2023, Carvalho received a contract with AllHere to build an AI chatbot called “Ed,” designed to help address student issues such as truancy.
It ended up collapsing in 2024 after its founder, Joanna Smith-Griffi, was accused of money laundering amid data privacy risks and whistleblower concerns. He was later charged with fraud, forgery and identity theft.
Kerr also claimed in AllHere’s bankruptcy court filings that the company owes him commissions for helping secure its contract with LAUSD, according to education-focused news outlet 74.
While federal officials confirmed that the search warrants were executed Wednesday, they declined to disclose the nature of the investigation, noting that the warrants are still sealed.
Government officials are seen carrying cardboard boxes outside a California home. (KTTV)
However, sources told the LA Times that the investigation falls under the broader category of financial problems, and that the attack focused on Carvalho rather than the California school district.
MAINE ‘MAMA BEAR’ FACES THREATS AS PARENTS FIGHT TO KEEP 8-YEAR-OLD BOY OFF GIRLS’ BASKETBALL TEAM
LAUSD released a statement saying the district is fully cooperating with federal officials.
“The LAUSD Board of Education understands that today’s news has raised questions in our school communities,” he said.
“The Board’s priority remains ensuring that our students, families, and staff have a safe and welcoming learning environment. Teaching and learning continue in all of our schools. Los Angeles Unified continues to focus on our responsibility to serve our students and families.”
The superintendent has led the second-largest school district since 2022, overseeing the education of about 400,000 students. He was unanimously re-elected to the position in September 2025.
Before moving to California, he spent 14 years earning Miami‑Dade County Public Schoolsthe fourth largest school district in the country.
The home of Alberto Carvalho, superintendent of the Los Angeles Unified School District, is in San Pedro, California. (KTTV)
Wednesday’s raid marks the latest controversy to engulf Carvalho.
In 2020, he helped secure a $1.57 million donation from the county’s contracted company, the Miami Herald. report.
CLICK HERE TO DOWNLOAD THE FOX NEWS PROGRAM
FBI agents appear to be executing a search warrant at a San Pedro home linked to Alberto Carvalho. (KTTV)
The funds reportedly went to an educational nonprofit he founded, and the company’s online learning program, which eventually became plagued with problems, was quickly terminated.
In June 2021, the school’s inspector general ruled that the donation, which was intended to help teachers, did not violate any policies but created “the appearance of impropriety,” the source said. The foundation was then asked to return the money, which was reportedly given to teachers in the form of $100 gift certificates.
Related Article
