FBI Searches Target LAUSD Supt. Alberto Carvalho in Probe Tied to Failed AI Vendor
Federal agents searched the home and office of Los Angeles Unified School District Supt. Alberto Carvalho on Wednesday morning, part of an investigation linked to AllHere, the AI company behind LAUSD's short-lived "Ed" chatbot. Warrants were executed at Carvalho's San Pedro residence, LAUSD headquarters, and a Florida address connected by public records to an individual who worked with AllHere. Affidavits are sealed. A spokesperson for federal prosecutors confirmed the searches but provided no further details.
Multiple sources familiar with the matter said the focus is Carvalho personally rather than the district and that the case falls under the broad umbrella of financial issues. LAUSD said it is cooperating. The FBI's Miami office confirmed a search in Southwest Ranches, Fla.
What's known about the AllHere connection
AllHere's founder, Joanna Smith-Griffin, was arrested in 2024 and charged with securities fraud, wire fraud, and aggravated identity theft. Before its collapse, AllHere worked on "Ed," a chatbot marketed to help students and families engage with district services. The tool was withdrawn and never fully deployed.
LAUSD paid about $3 million for work completed under a contract initially worth up to $6 million over five years. By comparison, the district's current budget is $18.8 billion. A former AllHere executive alleged weak security practices at the company, but there's been no evidence of a breach affecting student or employee data.
Carvalho's prior statements and context
Carvalho has said he had no role in selecting AllHere for LAUSD or for a separate Miami-Dade contract while he led that district. After the 2024 indictment, he announced plans for a task force to review what went wrong and set a path forward. There's been no public sign that such a task force was established or met.
Carvalho, who took over LAUSD in 2022 after a high-profile tenure in Miami-Dade, previously faced scrutiny from Miami-Dade's inspector general over a $1.57-million donation he helped solicit from an online-learning vendor with a pending contract. The 2021 report found no policy violations but said the donation created an appearance of impropriety; the funds were later distributed as gift cards to teachers.
Why this matters for educators and district leaders
AI pilots move fast. Governance, procurement discipline, and vendor oversight need to move faster. This case underscores how quickly an edtech bet can turn into legal, financial, and reputational risk-especially when executive involvement, documentation, and external validation are unclear.
Action steps districts should take now
- Tighten vendor due diligence: Require background checks on founders, audited financials, references from similar districts, and a clear security posture (SOC 2, penetration tests, data maps).
- Stage contracts with gates: Start small. Tie payments to verifiable milestones and independent performance validation. Include a "kill clause" with rapid off-ramps.
- Clarify decision rights and recusals: Document who selects vendors, who approves spend, and when leaders must recuse for perceived conflicts. Publish this flow.
- Protect data by design: Conduct data protection impact assessments, minimize data shared with vendors, and require clear deletion/exit terms.
- Insist on independent testing: Evaluate accuracy, bias, uptime, and security via third parties before scale-up. Keep test results on file.
- Set public success/failure criteria: Define measurable outcomes before pilots begin. If a pilot misses targets, pause or exit.
- Keep a paper trail: Archive all procurement, meeting notes, approvals, and vendor communications. Assume they'll be reviewed.
- Practice incident and media response: Draft statements, assign spokespersons, and run tabletop exercises for legal, data, or vendor failures.
- Audit existing AI tools: Inventory every AI feature live in classrooms or ops. Verify contracts, data flows, and vendor health.
- Engage your board and community: Provide regular public updates on AI initiatives, costs, outcomes, and risks.
For teachers and school staff
- Ask which tools touch your students' data: Know what's in use, where data goes, and how to report concerns.
- Pilot with consent and guardrails: Use opt-in where feasible, document classroom impact, and flag issues promptly.
- Avoid reliance on single-vendor tools: Keep alternatives ready so instruction doesn't stall if a tool is pulled.
What's next
Authorities have not alleged wrongdoing by the district itself. The investigation centers on Carvalho, and details remain sealed. Expect more attention on AI procurement, executive oversight, and how large districts vet fast-moving vendors.
Practical resources
- AI for Education - research, implementation guides, and risk topics relevant to K-12.
- AI Learning Path for School Principals - governance, procurement, policy, and oversight for school and district leaders.
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