A private letter delivered to Los Angeles Unified School District Superintendent Alberto Carvalho before he stepped down cautioned the embattled education leader that the board may have had legal grounds to dismiss him, offering a glimpse into the internal pressure that preceded his sudden departure.
According to the LA Times, the letter stated that Carvalho could face termination “for cause” tied to several alleged ethics breaches, including accusations that a district contractor now under FBI scrutiny covered his travel to Washington, DC, and that he did not report financial benefits on mandatory state disclosure filings.
The disclosure comes four months after federal agents searched Carvalho’s residence and LAUSD office on February 25 as part of an investigation connected to the education technology startup AllHere.
Two days after those searches, the school board placed Carvalho on paid leave, though there was no public indication at the time that members were also pressing him to resign.
In its letter, the board cited at least three occasions in which Carvalho allegedly accepted financial benefits that were not disclosed.
Those examples reportedly included an August 2023 visit to President Joe Biden’s White House that sources said was funded by AllHere, tickets and potential perks connected to at least two events at Dodger Stadium, and travel expenses for an education conference in Denver.
The letter also questioned Carvalho’s alleged personal use of a district-provided vehicle and driver, resources that were intended strictly for official business.
People familiar with the letter told the outlet that the alleged actions could have supported firing Carvalho for cause because the benefits were omitted from required financial disclosure documents.
Carvalho initially sought an exit package worth more than $1 million, along with legal indemnification that would have allegedly required the district to cover his legal costs.
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The district countered with an offer of several months’ pay if Carvalho dropped the indemnification request. The board then sent the confidential letter warning that it had potential grounds to terminate him for cause.
Under Carvalho’s contract, a dismissal for cause would have eliminated any severance payment, while termination without cause would have entitled him to at least one year’s salary. He would still have been eligible to receive compensation for unused vacation time under either scenario.
Carvalho’s representative disputed that the allegations warranted termination, saying each issue had mitigating factors and that none of the cited actions, individually or collectively, justified firing him.
When Carvalho publicly announced his resignation, he said he was stepping down because he believed the district should remain focused on students and learning “without distraction.”
A major focus of the federal investigation is Carvalho’s relationship with AllHere, the now-defunct technology company hired by LAUSD to develop an artificial intelligence chatbot known as “Ed.”
Carvalho unveiled the chatbot during his annual superintendent’s address at Disney Hall on Aug. 4, 2023, promising it would transform personalized education. Four days later, he traveled to a White House cybersecurity summit, where he claims he paid for his airfare and hotel.
By then, AllHere had already secured a contract worth up to $6.2 million. The company completed about $3 million worth of work before collapsing less than a year later.
Carvalho’s spokesperson said district officials had long known about AllHere’s contribution toward his work-related travel and reviewed the expenses after the company collapsed in 2024, concluding no action was necessary.
Carvalho’s latest four-year contract took effect just 11 days before the FBI raid. It pays him $440,000 annually and includes a $50,000 retirement annuity contribution.
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