The federal probe into the Los Angeles Unified School District’s superintendent, following raids at his residence and office on Wednesday, may be linked to a controversial multimillion-dollar AI contract that raised conflict-of-interest concerns.

Superintendent Alberto Carvalho had previously approved a $6 million deal, with an initial $3 million payment, to the education tech company AllHere.

Records referenced by the Los Angeles Times indicate that Debra Kerr, a former salesperson for AllHere, also had her Miami home searched on the same day as Carvalho’s premises. Kerr reportedly maintained a close relationship with Carvalho during his leadership of Miami-Dade County Public Schools.

Jim Marshall, a spokesperson, confirmed to the Miami Herald that “a residence in Southwest Ranches was searched today in connection with this investigation and has since been cleared.”

Superintendent Alberto Carvalho is seen addressing an event at the LAUSD headquarters in downtown Los Angeles on October 30, 2025. (Genaro Molina/Los Angeles Times via Getty Images)

In 2023, Carvalho facilitated a contract with AllHere to create an AI chatbot named “Ed,” which aimed to tackle student challenges, including absenteeism.

It ultimately collapsed in 2024 after its founder, Joanna Smith-Griffi, was accused of embezzling funds amid data privacy risks and whistleblower concerns. She was later charged with securities fraud, wire fraud and identity theft.

Kerr further claimed in AllHere’s bankruptcy court filings that the company owed her commissions for helping secure its deal with LAUSD, according to education-focused outlet The 74. 

While federal officials confirmed that search warrants were conducted Wednesday, they declined to reveal the nature of the investigation, noting that the warrants remain under seal.

Federal officials appear to carry cardboard outside a home in California. (KTTV)

However, sources told the LA Times that the investigation fell under the broad category of financial issues, and that the raid focused on Carvalho rather than the California school district.  

LAUSD released a statement saying the district is fully cooperating with federal officials.

“The LAUSD Board of Education understands that today’s news has raised questions across our school communities,” it said. 

“The Board’s priority remains ensuring that our students, families, and employees experience a safe and welcoming learning environment. Teaching and learning continue across our schools. Los Angeles Unified continues to stay focused on our responsibility to serve students and our families.”

The superintendent has led the nation’s second-largest school district since 2022, overseeing the education of roughly 400,000 students. He was also unanimously reappointed to the position in September 2025.  

Before moving to California, he spent 14 years leading Miami‑Dade County Public Schools, the nation’s fourth-largest school district. 

The home of Alberto Carvalho, the superintendent of the Los Angeles Unified School District, is located in San Pedro, California.  (KTTV)

Wednesday’s raids mark the latest controversy to engulf Carvalho.

In 2020, he helped secure a $1.57 million donation from a company that had a pending contract with the district, the Miami Herald reported.

FBI agents appear to conduct a search warrant at a San Pedro home connected to Alberto Carvalho. (KTTV)

The funds reportedly went to an education nonprofit he founded, and the company’s online learning program, which was ultimately plagued with problems, was quickly scrapped.

In June 2021, the school’s inspector general determined that the donation, intended to benefit teachers, did not violate any policies but created the “appearance of impropriety,” the outlet said. The foundation was subsequently urged to return the funds, which reportedly had been distributed to teachers as $100 gift certificates.

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