FBI Executes Search Warrants at LAUSD Headquarters and Superintendent’s Home in Sealed Financial Probe

(LibertyInsiderNews.com) – FBI agents raided the Los Angeles Unified School District headquarters and the home of Superintendent Alberto Carvalho in a sealed federal investigation targeting financial misconduct tied to a failed AI chatbot program, raising serious questions about how taxpayer dollars were spent on unproven technology and who profited from the deal.

Story Snapshot

FBI executed search warrants at LAUSD headquarters and Superintendent Alberto Carvalho’s San Pedro home on February 25, 2026, in a sealed white-collar investigation
Federal probe centers on financial dealings related to LAUSD’s failed AI chatbot “Ed” developed by AllHere, whose CEO was arrested in 2024 for securities fraud
Carvalho previously faced ethics scrutiny in Miami-Dade for handling a $1.57 million donation from a company with pending district contracts
The investigation targets Carvalho personally, not the entire district, according to law enforcement sources

FBI Descends on Nation’s Second-Largest School District

FBI agents arrived at Carvalho’s San Pedro home around 6 a.m. Wednesday with armed tactical gear, sirens blaring and loudspeakers ordering residents to remain inside. Neighbors reported seeing a man possibly handcuffed, though officials did not confirm whether it was Carvalho. Simultaneously, federal agents executed search warrants at LAUSD headquarters in downtown Los Angeles, where media and students gathered to witness boxes being carried from the building. The U.S. Attorney’s Office confirmed judicially approved warrants were executed but provided no additional details, citing the ongoing sealed investigation.

Failed AI Program at Center of Federal Probe

The investigation focuses on LAUSD’s partnership with AllHere, a tech company that developed “Ed,” an AI chatbot intended to revolutionize student and family communication. The program was heavily promoted but never fully deployed and was ultimately unplugged after failing to deliver promised results. AllHere’s CEO Joanna Smith-Griffin was arrested in 2024 on charges of securities fraud, wire fraud, and aggravated identity theft for allegedly lying to investors about the company’s performance. Federal investigators are now examining Carvalho’s personal financial ties to AllHere and potential improprieties in how the contract was awarded and taxpayer funds were spent.

Pattern of Questionable Vendor Relationships

This is not Carvalho’s first brush with ethics concerns over vendor dealings. While leading Miami-Dade County Public Schools from 2008 to 2021, a 2020 inspector general investigation flagged an “appearance of impropriety” in his handling of a $1.57 million donation from an online instruction company that had pending contracts with the district. Despite recommendations to return the funds, Carvalho distributed the money as teacher gift certificates. While the inspector general found no formal ethics violation, the incident raised red flags about his judgment in managing relationships with companies doing business with public schools. This pattern of questionable dealings with education technology vendors now follows him to Los Angeles.

Federal agents also searched a residence in Southwest Ranches, Florida, in Broward County as part of the same investigation, suggesting the probe extends beyond California. LAUSD officials issued a brief statement confirming cooperation with the investigation but declined to provide further information. The district, which serves more than 500,000 students across over two dozen cities, continues normal operations while the sealed investigation proceeds. LAUSD has announced plans to bring in independent experts to review what went wrong with the AI program and chart a path forward.

Accountability for Taxpayer-Funded Tech Boondoggles

This investigation highlights a growing problem with public school districts rushing to adopt unproven technology without adequate oversight or accountability. When education leaders chase flashy tech solutions and partner with companies making big promises, taxpayers end up footing the bill for expensive failures. The AllHere AI chatbot collapse represents another example of government waste on a program that delivered nothing for students while potentially enriching vendors and raising questions about personal financial ties between school officials and private companies. Americans rightly expect their tax dollars to be spent wisely on proven educational programs, not experimental technology deals that may benefit insiders.

As this sealed federal investigation unfolds, parents and taxpayers deserve transparency about how their money was spent and whether anyone profited inappropriately from the failed AI program. The spectacle of armed FBI agents conducting early-morning raids with tactical gear at a superintendent’s home and district headquarters sends a clear message that federal investigators believe they have found serious wrongdoing. While Carvalho has not been charged with any crime and the investigation remains sealed, his history of ethics questions and the dramatic nature of these raids suggest this story is far from over.