You’re about to read a high-stakes look at a looming crisis in Los Angeles schools, tied to a federal investigation that centers on the district’s leadership and a now-defunct tech partner. But first, a quick reality check: the stakes here aren’t just about one AI project or one superintendent—they touch the trust, safety, and future of thousands of students and their families.
The Los Angeles Board of Education is convening for a closed-door session on Thursday afternoon, following FBI activity that targeted Supt. Alberto Carvalho’s residence and LAUSD headquarters. The probe appears connected to AllHere, the company behind a failed AI chatbot designed for district use.
Timeline and what’s currently known:
- Wednesday at noon, LAUSD posted a new closed-session item for the Board of Education: “Public Employment: General Superintendent of Schools.” That same day, federal authorities announced they were carrying out investigations related to the district, but did not immediately share specifics.
- Officials stated they were cooperating with investigators and provided no further details.
- A source familiar with the matter told The Times that investigators are examining AllHere, whose founder faced fraud charges in 2024.
- In addition to the California targets, the FBI searched a Florida address tied to an individual who worked with AllHere, offering a geographical clue into the broader inquiry.
What makes the situation especially delicate is the central figure: Carvalho has led LAUSD since February 2022, aiming to repair a district battered by pandemic-era disruptions and recent immigration-related challenges. He has intentionally prioritized improving attendance, tackling campus safety and labor issues, and pursuing strategic reforms that could shape the district’s trajectory for years.
Carvalho’s leadership milestones, as reported over time, include:
- Highlighting post-pandemic gains: last year, math and English scores rose across tested grades, suggesting progress in instruction after a period of upheaval.
- Taking a stand on immigration raids: he drew national attention for opposing government actions that affected students and families, boosting his profile as an advocate on this frontline issue.
- Securing a four-year contract extension in September, with an annual salary of $440,000, approved unanimously by the Board of Education.
One of Carvalho’s notable program efforts involved an AI initiative called Ed, a chatbot envisioned to support students, families, and teachers as part of an individualized acceleration plan (IAP). Promoted as an AI-powered student advisor that would handle questions accurately and privately, Ed was launched with optimism but was disconnected only a few months after its 2024 rollout, before full deployment.
The current investigation appears to extend beyond routine district concerns to include the intricate financial and contractual dealings related to AllHere. Reports indicate that Debra Kerr, a consultant associated with AllHere's LA project, owns the Florida property that FBI agents searched. Kerr has long-standing ties to Carvalho, dating back to his Miami days as a superintendent, and has claimed in court papers that AllHere owed her a substantial commission.
Key people involved include:
- Joanna Smith-Griffin, AllHere’s founder and former CEO, who was arrested in 2024 on securities fraud, wire fraud, and aggravated identity theft charges. She pleaded not guilty and was released on bond. Her case continues to unfold in federal proceedings.
- Debra Kerr, a sales consultant tied to AllHere’s operations and financing, whose relationship with Carvalho adds another layer of complexity to the inquiry.
FBI representatives have declined to provide further details due to sealed court filings, and sources who spoke on condition of anonymity emphasized that the focus of the investigation appears to center on Carvalho and the district’s financial dealings rather than on LAUSD as a whole.
The unfolding events pose a significant test for LAUSD’s leadership and for the broader question of how well schools can navigate rapid technological experimentation, financial accountability, and public trust in a time of heightened scrutiny. As the Board of Education prepares its closed session and authorities continue their inquiry, observers will be watching closely to see how the district responds, what reforms or safeguards might be introduced, and how students and families are protected going forward.
Controversial angles to watch:
- The balance between bold innovation in education technology and rigorous oversight—does speed to implement new tools justify risks to privacy, accuracy, and accountability?
- The role of external consultants and vendors in public school systems—are there structural safeguards to prevent conflicts of interest or misaligned incentives?
- How districts handle high-profile investigations while maintaining focus on student progress—will governance, transparency, and communications strategies adapt to restore confidence?
What’s your take? Do you think the district should prioritize accelerating educational technology despite potential oversight challenges, or should it slow down, tighten controls, and reassess partnerships to protect students first? Share your perspective in the comments.
