{"id":199228,"date":"2026-03-01T11:42:08","date_gmt":"2026-03-01T11:42:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/199228\/"},"modified":"2026-03-01T11:42:08","modified_gmt":"2026-03-01T11:42:08","slug":"how-probe-into-failed-startup-led-to-lausd-superintendent-investigation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/199228\/","title":{"rendered":"How probe into failed startup led to LAUSD superintendent investigation"},"content":{"rendered":"\n<p>Alberto Carvalho and Debra Kerr\u2019s roots date back to their days together in the Florida education community.<\/p>\n<p>Carvalho was the charismatic leader of Miami-Dade County schools, and Kerr was a well-known figure in the private sector, working for firms doing business with school systems.<\/p>\n<p>Carvalho gave the keynote speech at a summit for superintendents sponsored by Age of Learning, where Kerr worked at the time as the head of sales. <\/p>\n<p>Over the years, Kerr shared Carvalho\u2019s Facebook posts to her own page, congratulating him on winning an award and often using the hashtag \u201c#leadershipmatters.\u201d Three years ago, Kerr posed for a smiling photo beside Carvalho, who had become the superintendent in Los Angeles, during what she described as his \u201cbrilliant\u201d opening of schools address. <\/p>\n<p>In 2023, Carvalho and Kerr became linked through another project. By now, Carvalho was head of the Los Angeles Unified School District and Kerr was working with AllHere, a Boston-based startup that promised a revolutionary tool in the form of a chatbot that would provide tailored academic guidance and other help to students and families \u2014 putting the district at the leading edge of artificial intelligence in the field of education.<\/p>\n<p>But the multimillion-dollar project failed within months <a class=\"link\" href=\"https:\/\/www.latimes.com\/california\/story\/2024-07-23\/carvalho-will-appoint-task-force-after-collapse-of-company-that-created-lausd-ai-chatbot\" rel=\"nofollow noopener\" target=\"_blank\">of its partial launch<\/a>. Then, the company went bankrupt and its chief executive was accused by federal prosecutors of fraud. This week, FBI agents searched the <a class=\"link\" href=\"https:\/\/www.latimes.com\/california\/story\/2026-02-25\/fbi-raid-lausd-search-warrants\" rel=\"nofollow noopener\" target=\"_blank\">homes of Carvalho and Kerr<\/a> as part of an investigation that sources  confirmed is connected to AllHere. The LAUSD headquarters also was searched.<\/p>\n<p>LAUSD placed Carvalho on indefinite administrative leave Friday,  clouding his future helming the nation\u2019s second-largest school district.<\/p>\n<p>Authorities have not provided any details about the scope of the investigation or named any targets. Carvalho and Kerr could not be reached for comment. But a review of court records and other documents offers a window into how a technology project envisioned as reshaping education crumbled amid allegations of fraud.<\/p>\n<p>\u2018Award-winning solution\u2019<\/p>\n<p>Joanna Smith-Griffin founded AllHere while at a startup incubator at Harvard University in 2016, according to the U.S. attorney\u2019s office for the Southern District of New York. Her stated goal was to use technology to reduce absenteeism in school.<\/p>\n<p>On the startup\u2019s now-defunct website, Smith-Griffin described herself as a former district attendance and family engagement coordinator whose experience \u201crevealed the frustrations that often arise when trying to connect students with the right support at the right time.\u201d<\/p>\n<p>\u201cAt AllHere, our mission is to strengthen student outcomes and boost staff effectiveness by offering easy-to-use, technology-powered, evidence-based education support services,\u201d the website read.<\/p>\n<p>AllHere\u2019s tech included an automated text messaging service that would send \u201cnudges\u201d to parents in an effort to improve their child\u2019s classroom attendance, according to an indictment charging Smith-Griffin. She  later pivoted the startup\u2019s strategy to using AI technology to develop a \u201cchatbot\u201d that would interact with students and their families.<\/p>\n<p>On its website, AllHere touted itself as an \u201caward-winning solution\u201d and \u201cthe only digital application powered by artificial intelligence and built by educators that is independently proven to positively impact stakeholder communication, family engagement, and student achievement.\u201d<\/p>\n<p>Amid the company\u2019s purported success, Smith-Griffin\u2019s public profile also grew. In 2021, she was on <a class=\"link\" href=\"https:\/\/www.forbes.com\/30-under-30\/2021\/education\/\" target=\"_blank\" rel=\"nofollow noopener\">Forbes magazine\u2019s coveted \u201c30 Under 30\u201d<\/a> list of leaders in the education field.<\/p>\n<p>\u201cMy goal over the next 12 months is a land grab,\u201d Smith-Griffin told Forbes. \u201cWe want to help students get to school every day and put them on the track to success.\u201d<\/p>\n<p>AllHere had client school districts in different parts of the country, but authorities later alleged that AllHere exaggerated its business success.<\/p>\n<p>In late 2022, Miami-Dade County Public Schools awarded AllHere a three-year, $1.8-million contract to create communication software to help at-risk students. The bidding process for the project began in the latter part of 2021, while Carvalho was still superintendent of that district, and the school board approved the agreement in October 2022, about eight months after he left.<\/p>\n<p>Carvalho has said  he had nothing to do with that contract. It is unclear what role Kerr  played in securing the deal and whether she talked  to Carvalho about the project.<\/p>\n<p>The following year, AllHere entered into what became a $6-million work order with LAUSD to develop a new AI chatbot, \u201cEd,\u201d prosecutors said. The company\u2019s greater value proposition was looking forward, as AllHere was to manage, moderate and continue to develop Ed \u2014 and partner with LAUSD in marketing and licensing the product to other school systems. <\/p>\n<p>Carvalho also  denied  involvement in the selection of AllHere in LAUSD. In an AllHere bankruptcy hearing in September 2024, Kerr said  she helped the company close the lucrative deal in L.A.<\/p>\n<p>In <a class=\"link\" href=\"https:\/\/www.latimes.com\/california\/story\/2023-08-04\/lausd-introduces-ed-the-chatbot-as-its-newest-student-advisor\" rel=\"nofollow noopener\" target=\"_blank\">a splashy announcement<\/a> in August 2023, Carvalho claimed  \u201cEd\u201d would be LAUSD\u2019s newest student advisor, programmed to tell parents about their child\u2019s grades, tests results and attendance. The official debut was in March  2024: At  a party at the Roybal Learning Center, dignitaries gave speeches, a mascot paraded in an Ed suit and a DJ spun tunes.<\/p>\n<p>But AllHere already was falling apart behind the scenes.<\/p>\n<p>Company collapse<\/p>\n<p>Around May 2024, Smith-Griffin, the sole person providing financial updates to investors and the company\u2019s board of directors, was late sending AllHere\u2019s first-quarter financial report.<\/p>\n<p>According to prosecutors, that prompted an associate at one of the investment companies to  contact AllHere\u2019s accountant for the report, which showed AllHere\u2019s annual recurring revenue was millions of dollars below what Smith-Griffin  reported to investors in prior quarters.<\/p>\n<p>Two of AllHere\u2019s major investors, along with the startup\u2019s outside financial accountant, began questioning Smith-Griffin on the discrepancy.<\/p>\n<p>Prosecutors allege that in an attempt to conceal the truth, Smith-Griffin in May 2024 created a fake email address for a real AllHere financial consultant and sent additional false financial and client information to investors.<\/p>\n<p>That June, the board of directors removed Smith-Griffin\u2019s access to AllHere bank and corporate accounts and terminated her as chief executive, prosecutors said. The company furloughed the majority of its employees, shuttered its operations and filed for bankruptcy the following month, according to the indictment.<\/p>\n<p>On Sept.  4, 2024, the U.S. Attorney\u2019s Office for the Southern District of New York served upon the bankruptcy trustee a grand jury subpoena seeking certain information and documents. In November, authorities arrested Smith-Griffin at her family\u2019s home in North Carolina. In the indictment, prosecutors accused her of engaging in a scheme to defraud investors starting around November 2020.<\/p>\n<p>As Smith-Griffin sought millions from investors, prosecutors allege that she misrepresented her startup\u2019s revenue, cash and customer base in marketing materials and financial statements. Smith-Griffin allegedly told investors  AllHere  earned approximately $3.7 million in revenue in 2020 from 92 total customers. In later rounds of financing, she  allegedly inflated the revenue for that year to $6.8 million.<\/p>\n<p>In reality, prosecutors said, the startup  generated  approximately $11,000 that year. And, according to the indictment, AllHere never had more than  31 client schools and school districts.<\/p>\n<p>Smith-Griffin also allegedly misrepresented which public school districts were AllHere customers. According to the indictment, six of the eight districts she claimed as customers had no contractual relationship with AllHere. The two districts that did paid AllHere approximately $27,000 and $30,000  over the life of their contracts. The eight districts did not include LAUSD. <\/p>\n<p>Prosecutors allege Smith-Griffin fraudulently obtained nearly $10 million from AllHere\u2019s investors. She is accused of using some of those funds to put a $150,000 down payment on a house in North Carolina and to pay for her wedding expenses.<\/p>\n<p>Smith-Griffin  pleaded not guilty to charges of securities fraud, wire fraud and aggravated identity theft. Her lawyers did not respond to a request for comment.<\/p>\n<p>Former FBI Assistant Director in Charge James E. Dennehy said in a statement at the time that Smith-Griffin\u2019s alleged actions \u201cimpacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses.\u201d<\/p>\n<p>\u201cThe FBI will ensure that any individual exploiting the promise of educational opportunities for our city\u2019s children will be taught a lesson,\u201d Dennehy added. <\/p>\n<p>Bankruptcy proceedings<\/p>\n<p>Kerr\u2019s ties to AllHere came to greater public attention during the September 2024 bankruptcy hearing. Kerr is listed in Delaware bankruptcy documents as the company\u2019s largest creditor \u2014 owed $630,000 \u2014 although that is listed as disputed. <\/p>\n<p><a class=\"link\" href=\"https:\/\/www.the74million.org\/article\/allhere-ai-los-angeles-schools-tool-bankruptcy-filing\/\" target=\"_blank\" rel=\"nofollow noopener\">The education website The 74 <\/a>reported that during the bankruptcy hearing, Toby Jackson, AllHere\u2019s former chief technology officer, said he had no invoices to substantiate the debt. Kerr chimed in during the hearing, stating  she never was paid her commission from the first payments that LAUSD made to the startup under their contract, the website said.<\/p>\n<p>\u201cI never did collect any commissions and it\u2019s in the contract based on commission percentages that would have been made on any sales accrued,\u201d  Kerr told the trustee, according to The 74.<\/p>\n<p>Neither the FBI nor confidential sources identified Kerr as a target of an investigation. Attempts to contact her were unsuccessful.<\/p>\n<p>In AllHere\u2019s bankruptcy filing, one of the largest assets listed was the LAUSD contract \u2014 valued at $2.88 million. <\/p>\n<p>The indictment and collapse of AllHere was an embarrassment for Carvalho and the school system but did not appear to represent a major financial exposure. The school system  spent about $3 million with the company for work completed as part of contracts worth up to $6 million over five years. By comparison, the district\u2019s budget this year is $18.8 billion.<\/p>\n<p>In an emailed statement, Miami-Dade County Public Schools officials said the district is aware of an investigation involving Carvalho but declined to comment. A spokesperson did not answer a question about whether the Miami-Dade schools system made any payments to AllHere on its $1.89-million contract, instead routing it as a public record request that will take additional time to fulfill.<\/p>\n","protected":false},"excerpt":{"rendered":"Alberto Carvalho and Debra Kerr\u2019s roots date back to their days together in the Florida education community. 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