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flag FBI raids linked to LAUSD’s failed AI chatbot project amid fraud probe.

In a federal investigation connected to AllHere Education, the defunct AI startup behind LAUSD's unsuccessful chatbot "Ed," the FBI raided the home and office of Los Angeles Unified School District Superintendent Alberto Carvalho as well as a Florida home connected to Debra Kerr. The investigation focuses on financial misconduct and possible misuse of funds from the $6 million district contract, building on previous charges against Joanna Smith-Griffin, the founder of AllHere, for securities fraud and identity theft. Internal alerts regarding the processing of student data on offshore servers were ignored. The inquiry is still ongoing, and Carvalho, who openly promoted the project, has not been charged.

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