The investigation that led to last week’s FBI raid on the home and office of Los Angeles Unified School Supt. Alberto Carvalho emerged more than a year ago and as a result of a referral from New York prosecutors working on a criminal fraud case involving a technology company with a school district contract that exploded, according to sources familiar with the investigation.
It wasn’t until last week that the investigation came to light. Sources said grand jury subpoenas have been served on individuals at Miami-Dade County Public Schools, where Carvalho served as superintendent before coming to LA in 2022. The subpoenas seek records from the district’s inspector general and the former Foundation for New Education Initiatives, according to a source familiar with the case.
The foundation was a non-profit organization that Carvalho oversaw while working in Miami. It is now called the Miami-Dade County Public Schools Foundation. In 2020 the inspector general of Miami-Dade schools concluded a $1.57-million donation Carvalho helped to protect the foundation – a company with a pending district contract – did not violate state or district ethics policies, but created the appearance of impropriety.
Neither the Miami-Dade County school district nor the foundation’s leadership immediately responded to requests for comment.
Federal authorities have not identified a target for the investigation, or accused anyone of wrongdoing. But sources told The Times last week that it was connected to AllHere, the company that makes the second-largest school system chatbot in the country.
At least one person connected to the transactions of the defunct tech company AllHere is cooperating with federal prosecutors, according to two sources familiar with the investigation.
Joanna Smith-Griffin, founder and former CEO of AllHere, was arrested in 2024 and charged with fraud, forgery and aggravated identity theft.
At the time, it was thought that the LA Unified School District chatbot — known as “Ed” — had been retired from service. Ed was an artificial intelligence AI tool billed by Carvalho in August 2024 as a revolution in student education and communication between LAUSD and the families it serves. The tool was not fully distributed.
Sources say prosecutors involved in the AllHere case have obtained evidence related to Carvalho to turn over to California prosecutors.
Along with Carvalho’s San Pedro home and the LAUSD headquarters office in downtown Los Angeles, the FBI searched the Florida home of Debra Kerr, a realtor whose clients include AllHere. Kerr had a long-standing relationship with Carvalho while leading Miami-Dade schools.
Attempts to contact Kerr and Carvalho were unsuccessful. They did not make public statements.
Kerr stated in court papers that the company owed him $630,000.
Prosecutors accused Smith-Griffin of defrauding AllHere investors of approximately $10 million. He is accused of using some of that money to pay a $150,000 down payment on a house in North Carolina and to pay for his wedding expenses.
Smith-Griffin has pleaded not guilty to charges of fraud, embezzlement and aggravated identity theft. His lawyers did not respond to a request for comment.
The Los Angeles Unified school board has held three closed-door meetings since the raid as it grapples with the dramatic developments that have placed Carvalho, among the nation’s most prominent K-12 education leaders. On Friday the board voted 7 to 0 to place Carvalho on indefinite leave and named executive director Andres Chait acting superintendent.
Chait on Monday promised to continue focusing on students briefly before the school board went into closed session to deal with personnel negotiations and the fallout from last week’s FBI raid on Carvalho’s home and office.
Board members left the door open for Carvalho to return by calling Chait an “acting superintendent,” to fill in temporarily. The board avoided using the term “interim superintendent.” They obviously didn’t want to suggest that Chait was active while the process of selecting Carvalho’s successor was underway.
After Monday’s call, Chait spoke briefly.
Acting LA Unified Supt. Andres Chait.
(Los Angeles Unified)
“I want to start by expressing my deepest respect for our extraordinary teachers and staff,” said Chait, who has worked for LA Unified for 27 years. “That respect comes from serving this community for nearly three decades as a teacher, administrator and leader.”
Chait said that he does not intend to change the policy in his role as a caretaker.
“As acting superintendent,” Chait said, “my top priority is keeping Los Angeles Unified focused and focused on our core mission: educating, supporting and caring for the students of Los Angeles.”
He added: “Our schools will remain places of safety, stability and opportunity. Teaching and learning will continue without disruption, and our programs and priorities will move forward. We are committed to academic excellence and student well-being. Our core values remain unchanged.”
Chait did not mention Carvalho, but referred to the current difficult situation.
“I know change can create uncertainty, but our district is strong. We have dedicated leaders at all levels and together, we will ensure stability and continuity. At this time, I will focus on supporting our schools and keeping students involved in every decision.”
Ten parent activists signed up to speak during the public comment period. A few praised Chait personally but said he had mishandled school safety issues – which were under his purview in his previous role as head of the department.
These parents were mostly supporters of the school police – and wanted them reinstated in college operations. In June 2020 the school board cut back on the school police and ended their presence on campus in many cases.
Chait, a district parent, has served as an elementary school principal and district administrator, among other roles.
He always presents at board meetings.
Overall, Chait’s choice was well received.
“We believe Andres Chait has the experience and commitment needed to move the district forward,” according to a statement from GPSN, a local education advocacy group. “In a time of uncertainty, maintaining strategic continuity and prioritizing improved student outcomes must remain a priority for the district.”
