LA school board to meet after FBI searches superintendent home – NBC 7 San Diego

<p>An almost four-hour closed-door meeting at Los Angeles Unified School District headquarters ended Thursday night without a resolution, as board members announced a recess until Friday afternoon.</p>
<p>The special session was expected to continue discussions regarding the district superintendent, though details of the conversation have not been made public.</p>
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<p>Board officials did not indicate when a decision might be reached, leaving the nearly four-hour session unresolved.</p>
<p>School board members in the nation's second-largest school district met behind closed doors a day after the FBI searched the office and San Pedro home of Los Angeles Unified School District Superintendent Alberto Carvalho.</p>
<p>Authorities have not provided details about what they're investigating and why they served search warrants Wednesday at Carvalho's home in the southern Los Angeles County seaside community, district headquarters and a location near Miami.</p>
<p>No arrests have been reported in connection with the federal investigation.</p>
<p>On Wednesday, the district's Board of Education issued a <a href="https://www.lausd.org/apps/news/article/2171351?categoryId=23516">joint statement</a> about the searches.</p>
<h3>U.S. &amp; World</h3>
<p>"The LAUSD Board of Education understands that today's news has raised questions across our school communities," the board said in the statement. "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."</p>
<p>The DOJ confirmed that searches were being carried out and video showed FBI agents at the superintendent's San Pedro home Wednesday morning. Agents at the scene refused to answer questions about the operation.</p>
<p>There was no law enforcement activity at the home early Thursday.</p>
<p>An affidavit filed in support of the searches was under seal, authorities said. It was not immediately clear whether anything was seized at the locations.</p>
<p>The LAUSD also confirmed there was "law enforcement activity" at its headquarters and Carvalho's home.</p>
<p>"The District is cooperating with the investigation," a spokesperson said in a statement.</p>
<p>NBCLA reached out to school board members for comment ahead of the Thursday afternoon closed-door session.</p>
<h2>Florida home searched in connection with investigation</h2>
<p>In addition to the searches in Southern California, authorities confirmed another search was carried out Wednesday at a home in South Florida.</p>
<p>Property records showed the Florida house searched in connection with the investigation belongs to a woman named Debra Kerr, who is linked to an chatbot investment made by the LAUSD two years ago. AllHere landed a $6 million contract with the district to provide an AI-powered chatbot called "Ed."</p>
<p>Court records show federal prosecutors have a separate, ongoing fraud case against the CEO of the now-defunct education technology company.</p>
<p>When unveiling “Ed,” Carvalho touted that it would act as a personal assistant for students and parents. The chatbot was supposed to do multiple tasks, such as tracking grades and providing educational and mental health resources.</p>
<p>The investment fell apart and Joanna Smith-Griffin, the founder of AllHere, was arrested and charged with securities, wire fraud and identity theft. By the time the AI deal collapsed, the LAUSD had reportedly paid AllHere $3 million in advance.</p>
<p>The <a href="https://www.justice.gov/usao-sdny/pr/ceo-artificial-intelligence-startup-company-charged-defrauding-investors">Justice Department</a> alleged in 2024 that Smith-Griffin, while misrepresenting the financial health of her tech company, obtained nearly $10 million from investors. Instead of using the money for her company and the chatbot, Smith-Griffin is accused of embezzling the corporate funds to put a down payment on her house in North Carolina and pay for her wedding. </p>
<p>Carvalho is not named in the investigation against Smith-Griffin.</p>
<p>The company eventually went bankrupt and laid off all employees.</p>
<p>Kerr had recently told a bankruptcy court that she is still owed a $630,000 commission for closing a $6 million AI software deal with the LAUSD. She is not mentioned in the investigation against Smith-Griffin.</p>
<p>Before arriving in Los Angeles, Carvalho headed the Miami-Dade County Public Schools for 14 years. Born in Portugal, Carvalho previously taught physics, chemistry and calculus in Miami and was later an assistant principal at Miami Jackson Senior High School.</p>