LAUSD Superintendent Alberto Carvalho Placed on Paid Leave After FBI Investigation Into AI Deal

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Alberto Carvalho, superintendent of the nation's second-largest school district, was placed on paid leave following an FBI investigation into LAUSD's $3 million contract with AllHere, an AI chatbot company whose founder was charged with fraud. The FBI raided Carvalho's home and district headquarters, sparking parent demands for resignation and raising questions about transparency in education technology contracts.

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FBI Investigation Triggers Leadership Crisis at LAUSD

Alberto Carvalho, the Los Angeles school superintendent overseeing more than 500,000 students, was placed on paid leave Friday after the LAUSD board unanimously voted to suspend him pending the outcome of an FBI investigation

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. The federal probe began with search warrants executed at Carvalho's San Pedro home, LAUSD headquarters in downtown Los Angeles, and a Miami property belonging to Debra Kerr, an education technology salesperson with longstanding ties to Carvalho

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. Rifle-toting FBI agents were seen removing boxes and other items during the coordinated FBI raid that sent shockwaves through the nation's second-largest school system

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Authorities have not provided details about the nature of the corruption probe, nor have they accused Carvalho of any wrongdoing. The school board deliberated behind closed doors for two days before making the decision, with Andres Chait, the chief of school operations, taking over as interim leader

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. The board had scheduled a superintendent's evaluation for Monday morning in closed session, according to court documents, following the execution of search warrants

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AllHere AI Chatbot Deal Under Scrutiny

The FBI investigation appears connected to LAUSD's dealings with AllHere, an artificial intelligence company that developed an AI chatbot named "Ed" for the district

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. In 2024, Carvalho heavily promoted the AllHere deal, which was designed to help students navigate educational resources. The district paid the company $3 million, but approximately three months after unveiling the technology, LAUSD dropped its dealings with AllHere as the company collapsed into bankruptcy

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AllHere founder Joanna Smith-Griffin, then 33, was charged with securities and wire fraud, along with identity theft in 2024

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. Under Carvalho's leadership, Smith-Griffin's company received nearly $3 million from LAUSD for services that were never performed, according to court documents

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. Federal prosecutors allege she spent the $10 million she bilked from investors on personal expenses including her wedding and North Carolina home. If found guilty, Smith-Griffin faces up to 20 years in prison

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Connections Raise Questions About Accountability

Debra Kerr, whose Miami property was searched during the federal probe, worked as a consultant for AllHere and had longstanding ties with Carvalho from his tenure overseeing Miami-Dade County schools

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. The 74, a news organization covering education technology, reported that Kerr's son worked for AllHere and pitched the technology to LA school leaders after Carvalho took the helm there. Kerr claimed she was never paid her $630,000 commission for her work in closing the AllHere deal with the district, according to bankruptcy hearings in 2024

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Carvalho denied personal involvement in the selection of AllHere, according to the Los Angeles Times. After Smith-Griffin was indicted, he said he would appoint a task force to examine what went wrong with the district's project, but no public announcements about it have been made since

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. Neither Carvalho nor Kerr have been charged with a crime, and court documents related to the searches remain sealed

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Parent Demands and Calls for Transparency

The school board held an emergency meeting about "public employment" and "general superintendent of schools" on Thursday, featuring a public comment period where furious parents demanded Carvalho's resignation

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. Parent demands centered on long-standing concerns about transparency and decision-making inside the district, which controls tens of billions in public funding. Juan Megondi told the board, "If this investigation escalates, resign out of dignity -- every single one of you"

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Diana Guillerri said she delivered thousands of signatures demanding action on school safety and accountability, arguing parents have repeatedly been kept in the dark about budgets and major decisions

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. A mother of a child in special education urged the board to consider how instability at the top could disrupt individualized education plans and legally mandated support systems

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Advocacy Groups Push for Tech Contract Audits

Local advocacy group Parents Supporting Teachers, which claims 30,000 followers, called for the board to appoint an interim superintendent immediately "to ensure continuity of leadership and stability across the district"

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. The group said Carvalho failed to adhere to standards of transparency and accountability around the use of public money. Schools Beyond Screens, a reform group with 1,100 members, called for his immediate suspension and demanded the district audit all tech contracts approved under Carvalho's leadership since 2022

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USC Rossier School of Education Dean Pedro Noguera said, "You can't have someone who's under investigation like this, leading the district. They're in the middle of budget cuts and negotiations with unions. It's a very challenging time for the district"

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. Noguera compared Carvalho's position to that of former Chicago public schools superintendent Barbara Byrd-Bennett, who resigned amid a bribery investigation in 2015 and later pleaded guilty

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What This Means for Education Technology Oversight

Carvalho became superintendent in 2022 after previously leading Miami-Dade County Public Schools, Florida's largest school district, where he was named Superintendent of the Year in 2014

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. He arrived in Los Angeles at a critical moment when the district was flush with state and federal COVID-19 relief funding but struggling with learning losses and declining enrollment

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The crisis raises urgent questions about how large school districts vet education technology vendors and manage multi-million-dollar contracts. With districts increasingly turning to AI-powered tools to address post-pandemic challenges, the LAUSD case may prompt other systems to examine their procurement processes and vendor relationships more closely. The investigation also highlights potential conflicts of interest when personal connections influence contract decisions involving public funds. As leadership stability remains uncertain, stakeholders are watching whether this case will lead to broader reforms in how school districts evaluate and implement emerging technologies.

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