Published on Mar. 3, 2026
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A federal investigation into the failed AI education startup AllHere has led to the homes of Los Angeles Unified School District Superintendent Alberto Carvalho and consultant Debra Kerr being searched by the FBI. AllHere’s CEO was accused of fraud after the company went bankrupt, and authorities are now looking into the roles Carvalho and Kerr played in the multimillion-dollar project that failed within months of its launch in LAUSD.
Why it matters
The collapse of the AllHere project and the subsequent investigation raises concerns about the vetting process for technology contracts in the nation’s second-largest school district, as well as the potential for conflicts of interest between public officials and private sector consultants. The case also highlights the risks of school districts rushing to adopt unproven AI-powered education tools.
The details
AllHere, a Boston-based startup, promised a revolutionary AI chatbot that would provide tailored academic guidance and other help to students and families in LAUSD. The $6 million contract was touted as putting the district at the leading edge of AI in education. However, the project failed within months, and AllHere went bankrupt. Federal prosecutors later accused the company’s CEO, Joanna Smith-Griffin, of fraud, alleging she misrepresented the startup’s revenue, cash, and customer base to investors. Carvalho and Kerr’s ties to AllHere have now come under scrutiny, with the FBI searching their homes and the LAUSD headquarters as part of the investigation.
- In late 2022, Miami-Dade County Public Schools awarded AllHere a three-year, $1.8-million contract while Carvalho was still superintendent there.
- In 2023, AllHere entered into a $6-million work order with LAUSD to develop the ‘Ed’ AI chatbot.
- In August 2023, Carvalho announced the launch of ‘Ed’ as LAUSD’s newest student advisor.
- In May 2024, AllHere’s financial issues came to light, leading to the CEO’s removal and the company’s bankruptcy filing in June 2024.
- In September 2024, federal authorities served a grand jury subpoena on the AllHere bankruptcy trustee, and in November 2024, the CEO was arrested.
The players
Alberto Carvalho
The superintendent of the Los Angeles Unified School District, who previously held the same position in Miami-Dade County schools and has now come under investigation for his ties to the failed AllHere project.
Debra Kerr
A well-known consultant in the education technology sector who worked with AllHere and is listed as the company’s largest creditor, owed $630,000, although the debt is disputed.
Joanna Smith-Griffin
The founder and former CEO of AllHere, who was accused by federal prosecutors of fraud for allegedly misrepresenting the startup’s financial performance and customer base to investors.
Los Angeles Unified School District (LAUSD)
The nation’s second-largest school district, which entered into a $6 million contract with AllHere to develop an AI chatbot called ‘Ed’ that ultimately failed.
Miami-Dade County Public Schools
The school district that awarded AllHere a $1.8 million contract while Carvalho was superintendent there.
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What they’re saying
“The FBI will ensure that any individual exploiting the promise of educational opportunities for our city’s children will be taught a lesson.”
— James E. Dennehy, Former FBI Assistant Director in Charge (U.S. Attorney’s Office for the Southern District of New York)
“I never did collect any commissions and it’s in the contract based on commission percentages that would have been made on any sales accrued.”
— Debra Kerr (The 74)
What’s next
The judge overseeing the AllHere bankruptcy case will continue to review the company’s finances and contracts, which could provide more information about the roles of Carvalho and Kerr. The FBI investigation is also ongoing, and it remains to be seen if any charges will be filed against the LAUSD superintendent or the consultant.
The takeaway
This case highlights the need for greater scrutiny and transparency in the procurement of educational technology, especially when it involves unproven AI-powered solutions. It also raises questions about the potential conflicts of interest that can arise when public officials have close ties to private sector consultants working on district contracts.
