In November 2024, Joanna Smith-Griffin, founder and former CEO of the now-defunct education technology startup AllHere Education, was arrested in North Carolina and charged in federal court in Manhattan.
Prosecutors allege she defrauded investors of nearly $10 million by inflating the company’s revenue, customer base, and cash flow. She faces charges of securities fraud, wire fraud, and aggravated identity theft.
According to federal authorities, Smith-Griffin allegedly diverted hundreds of thousands of dollars in investor funds for personal expenses, including a down payment on a home in North Carolina and costs related to her wedding.
She has pleaded not guilty and was released on a $350,000 bond. As of late February 2026, the case remains open. Recent court filings indicate possible disposition discussions — suggesting that settlement negotiations may be underway between her legal team and federal prosecutors.
Possible Links to Superintendent Alberto Carvalho
On February 25, 2026, the FBI raided the home and office of Alberto Carvalho, superintendent of the Los Angeles Unified School District.
The reported investigation centers on a $3 million contract LAUSD awarded to AllHere for an AI chatbot named “Ed,” shortly before the company filed for bankruptcy.
Federal agents also searched the Florida home of Debra Kerr, a consultant who helped broker the LAUSD–AllHere deal and who has longstanding professional ties to Carvalho.
Prior to the extension of Carvalho’s contract in October 2025, parent and teacher groups had already cited the failed AI chatbot project — which carried a total contract value of approximately $6 million — as grounds for terminating his agreement. Critics also pointed to the district’s handling of the 2025 fires, noting that schools remained open despite evacuation zone dangers.
