The superintendent of the Los Angeles Unified School District resigned Sunday amid an ongoing FBI investigation into a failed artificial intelligence contract. Alberto Carvalho, who led the nation's second-largest school district since 2022, stepped down effective June 21, 2026, stating his departure would remove distractions from student learning. His resignation follows a February raid by federal agents on his home and office, as well as the residence of a longtime professional associate.
The FBI investigation centers on a 2023 contract worth $6 million that Carvalho awarded to AllHere, a startup tasked with developing a student-facing chatbot. The district paid $3 million upfront for the project, which collapsed in 2024 after the company's founder, Joanna Smith-Griffith, faced accusations of embezzling funds. The failed initiative also raised data privacy concerns and prompted whistleblower complaints, according to reports.
Federal agents executed search warrants at multiple locations in February, including Carvalho's residence and LAUSD headquarters, where staff were evacuated during the operation. Investigators also searched the Miami home of Debra Kerr, an education technology salesperson who maintained a long-standing personal and professional relationship with Carvalho dating back to the 2000s. Public records indicate Kerr helped facilitate the AllHere contract, though authorities have not publicly commented on the investigation's scope or targets.
Carvalho's four-year tenure included a unanimous reappointment by the school board in fall 2025, just months before the federal raid. In his resignation statement, he cited record graduation rates and improved academic performance as achievements during his leadership. The LAUSD Board of Education responded by pledging to maintain stability and public trust while acting superintendent Andrés E. Chait continues leading the district.
School districts and education officials should review procurement processes for technology contracts, particularly those involving personal relationships between vendors and decision-makers. Organizations should implement conflict-of-interest policies requiring disclosure of professional associations and establish independent oversight for high-value contracts. Districts should also conduct due diligence on vendor financial stability and data security practices before awarding contracts involving student information.
Source: https://www.foxnews.com/us/los-angeles-schools-superintendent-alberto-carvalho-resigns-amid-fbi-probe