The federal investigation into former Miami-Dade and Los Angeles Schools Superintendent Alberto Carvalho has escalated following a series of coordinated FBI raids and new financial disclosures.
The probe centers on Carvalho’s ties to the collapsed AI firm AllHere Education and potential financial improprieties involving multi-million dollar school contracts. These developments follow earlier reports from Hy-Lo News, which detailed how Carvalho was being targeted after the relationship between the educational technology company and his administration was reportedly exposed.
As first reported by the Miami Herald, federal agents executed search warrants Wednesday morning at Carvalho’s home in San Pedro and his office at the Los Angeles Unified School District (LAUSD) headquarters.
Simultaneously, the FBI raided a residence in Southwest Ranches, Florida, belonging to Debra Kerr, a veteran education lobbyist with decades-long professional ties to Carvalho. Kerr, whose son was employed by AllHere, claimed in bankruptcy filings that she was owed more than $600,000 in unpaid commissions for “closing” a $6 million LAUSD contract. Federal authorities are examining whether these personal connections influenced the procurement process.
While the investigation initially focused on the $6 million “Ed” chatbot project in Los Angeles, records recently released by Miami-Dade Public Schools show the Florida district was also a primary source of revenue for the failed startup.
According to the Miami Herald, Miami-Dade paid AllHere approximately $1.6 million for a truancy-reduction platform before the company declared bankruptcy in 2024. Carvalho has denied direct involvement in the Miami-Dade contract, noting it was finalized after his departure to Los Angeles. However, federal investigators have subpoenaed the district’s Inspector General and the Foundation for New Education Initiatives, a non-profit Carvalho founded in 2008.
Following the FBI searches, the LAUSD Board of Education voted unanimously to place Carvalho on paid administrative leave, effective immediately. The district has appointed Chief of Operations Andres Chait as acting superintendent, suspended all remaining projects associated with AllHere, and stated it is cooperating fully with federal authorities.
The investigation follows the 2024 indictment of AllHere founder Joanna Smith-Griffin, who currently faces federal charges for securities and wire fraud. Prosecutors allege Smith-Griffin defrauded investors of $10 million by inflating company success, which was largely bolstered by high-profile endorsements and massive contracts from Carvalho’s administrations.
Neither Carvalho nor Kerr has been charged with a crime. Carvalho has maintained that the collapse of the AI project was a “disturbing house of cards” created by the company’s leadership and has vowed to protect his reputation.
Sign up for our weekly email newsletter and watch our weekly LIVE podcast news show every Thursday at 5:30pm. Subscribe to our YouTube page to get alerts for the show.
Do you have news to share? If so, send Hy-Lo News your story ideas by clicking HERE.
0 comments on “FBI Raids Homes of Former Superintendent Alberto Carvalho and Lobbyist in Expanding AI Fraud Probe; Miami-Dade Records Reveal $1.6M Payment to Shuttered Tech Firm”