FBI Raid Forces LA Schools Chief to Resign After $6M AI Contract Scandal

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The FBI raided his home at dawn. Four months later, the superintendent of America’s second-largest school district resigned.

Los Angeles Unified School District Superintendent Alberto Carvalho stepped down Sunday, ending his tenure after federal agents executed search warrants at his San Pedro home and district headquarters in February. The Board of Education placed him on paid leave days after the raid.

Authorities haven’t publicly disclosed what they’re investigating, but sources say the probe centers on LAUSD’s $6 million contract with AllHere Education — an AI chatbot startup that collapsed into bankruptcy amid fraud charges against its founder.

The federal investigation reportedly spans both Carvalho’s Los Angeles tenure and his 14-year run leading Miami-Dade County Public Schools. Law enforcement sources indicate the probe predates his California arrival, exploring allegations of a kickback scheme with an outside business during his Florida years.

“The Board remains steadfast in its commitment to ensuring stability, continuity, and continued progress through strong leadership. Our focus remains unchanged: providing every student with a high-quality education, supporting our dedicated workforce, and maintaining the trust of the communities we serve.”

When the FBI raided Carvalho’s Los Angeles properties, agents simultaneously searched the Florida home of a former AllHere executive. The scrutiny focused on how the lucrative contract was awarded — even as Carvalho denied personal involvement in the selection process.

The AllHere contract funded an AI student assistant chatbot called “Ed” that collapsed months after launch. Federal prosecutors indicted AllHere founder Joanna Smith-Griffin on fraud charges.

In his resignation letter, Carvalho said he chose to step down to “prevent the ongoing investigation from hindering the district’s educational mission.” He maintained his innocence throughout. Federal prosecutors have filed no criminal charges against him.

The charges remain allegations. The case has not been proven in court.

Andrés Chait will continue as acting superintendent. Chait has managed daily operations since Carvalho was sidelined in late February.

Carvalho took the helm in 2022 after leading Miami-Dade schools for 14 years. His Los Angeles tenure saw a massive three-day employee strike in 2023 and brewing fiscal challenges threatening budget cuts and layoffs.

“It has been a great honor to serve you. Over the past four years, together, we have made historic progress — gains that belong to our students, our educators, staff, and our communities.”