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LAUSD Superintendent Placed on Leave Amid Federal Probe Over Failed AI Deal

March 3, 2026, 4:00 am
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Los Angeles Unified School District Superintendent Alberto Carvalho now stands on paid leave. This decision followed federal action. The FBI recently executed search warrants at his home and LAUSD headquarters. A separate Miami location was also searched. The federal probe focuses on the nation's second-largest school district. A key element is a failed 2024 education technology contract. This involved an AI chatbot company, AllHere. The company received $3 million. It later collapsed into bankruptcy. Its founder now faces charges for securities and wire fraud, plus identity theft. Carvalho himself denied direct involvement in the AllHere selection. Past scrutiny concerning a non-profit donation during his Miami tenure also resurfaces. The investigation's specifics remain undisclosed. LAUSD officials cooperate fully. The district navigates deep uncertainty, awaiting further federal details and grappling with its leadership void.

Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho is on paid leave. The district's Board of Education made the move Friday. This decision followed intense federal scrutiny. The FBI had conducted significant searches just two days prior.

Federal agents served search warrants Wednesday. They targeted Carvalho's home in San Pedro. LAUSD headquarters also saw federal activity. A third location near Miami was included. Carvalho previously led public schools there. Federal officials offered no specifics. They did not detail the nature of their investigation. No allegations of wrongdoing against Carvalho have been made public.

Andres Chait, chief of school operations, now leads LAUSD. He serves as interim superintendent during Carvalho’s absence. The district issued a statement. It confirmed cooperation with the federal investigation. No further information was released.

The federal probe appears linked to a controversial education technology deal. LAUSD entered this agreement in 2024. It involved a company named AllHere. AllHere developed an AI chatbot called "Ed." Carvalho heavily promoted this technology. He called it a "game changer." LAUSD paid AllHere $3 million. The aim was to help students with the AI tool.

The partnership quickly soured. Less than three months after its unveiling, LAUSD dropped AllHere. The company then collapsed into bankruptcy. Months later, its founder faced serious charges. Joanna Smith-Griffin was indicted for securities fraud, wire fraud, and identity theft.

Carvalho previously denied personal involvement in AllHere's selection. This was reported by the Los Angeles Times. After Smith-Griffin's indictment, Carvalho announced a task force. It would examine the project's failures. No public announcements about this task force have since emerged.

Further details surrounding the AllHere deal emerged. Debra Kerr, an education technology salesperson, played a role. She reportedly connected AllHere with LAUSD. Kerr claimed an unpaid $630,000 commission. This information surfaced during AllHere's bankruptcy hearings.

Kerr maintained longstanding ties with Carvalho. Their relationship dated back to his leadership in Miami-Dade. Kerr's son, an AllHere employee, also pitched the technology. He presented it to LA school leaders after Carvalho arrived in Los Angeles.

Carvalho's tenure in Florida also drew scrutiny. In 2020, a nonprofit he founded solicited a large donation. A $1.57 million sum came from an online education company. Miami-Dade schools were considering using this company. The district later dropped the company. The district's inspector general investigated. No ethics policies were violated, but an "appearance of impropriety" was cited. The donation was distributed to teachers as gift cards.

Despite these controversies, Carvalho boasts an impressive career. He arrived in Los Angeles in 2022. He previously earned widespread praise. He notably oversaw Miami-Dade County Public Schools. He was named Superintendent of the Year in 2014. Spain knighted the Portugal-born administrator in 2021. This honored his work expanding Spanish-language programs in Miami-Dade.

In Los Angeles, Carvalho has been lauded. The district saw academic performance improvements under his leadership. He arrived at a critical juncture. LAUSD was flush with COVID-19 relief funds. Yet it battled pandemic impacts. These included significant learning losses and declining enrollment.

Carvalho also took strong public stances. He criticized the Trump administration's immigration crackdown. He urged authorities to avoid school areas during raids. He highlighted his own past as an undocumented immigrant. He also sparred with Florida Governor Ron DeSantis. This was over mask mandates in schools during the pandemic.

The Miami-Dade school system acknowledged the investigation. They offered no further comment. Los Angeles Mayor Karen Bass's office also remained silent. They noted the school system's independence from city government.

The federal investigation's full scope remains unclear. Specific charges against Carvalho have not been filed. The LAUSD faces considerable challenges. The nation's second-largest school district operates under a cloud of uncertainty. Its immediate future and long-term direction are now in question. The community awaits transparency and resolution. The probe's findings will shape the district's path forward.