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FBI raid involving LA schools superintendent possibly tied to failed $6M AI deal, potential conflict
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The federal investigation into the Los Angeles Unified School District superintendent, whose home and school office were raided Wednesday, may be tied to a failed multimillion-dollar AI school contract involving a potential conflict of interest.
Alberto Carvalho previously awarded a $6 million contract, paying $3 million up front, to education technology company AllHere.
A former salesperson employed by the firm also had her Miami property raided the same day as Carvalho, according to public records cited by the Los Angeles Times. The woman, Debra Kerr, reportedly had close ties to Carvalho during his tenure leading Miami-Dade County Public Schools.
Spokesperson Jim Marshall confirmed to local media Miami Herald that “we searched a residence in Southwest Ranches today as part of this matter and have since cleared the scene.”
Superintendent Alberto Carvalho speaks during 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 secured a contract with AllHere to develop an AI chatbot called “Ed,” designed to help address student issues such as 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.
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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.
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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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One of San Francisco’s busiest freeways remained shut down Saturday, creating major traffic delays and dampening business for some local restaurants and shops.
All eastbound lanes of Interstate 80 just before the Bay Bridge are closed as crews work around the clock to rehabilitate the roadway. The 55-hour shutdown, which began on Friday night, is scheduled to last until Monday morning in time for the commute.
The closure has forced drivers onto detour routes, leading to heavy congestion for those trying to reach the East Bay, including Oakland and Berkeley.
The impact is being felt beyond the roadways.
At MoMo’s, a restaurant across from Oracle Park, staff found business noticeably slower.
“A little bit more mellow than usual. We usually see a little bit more foot traffic, a little bit more people on Saturdays,” said Daniel Bermudez, executive chef at MoMo’s.
Bermudez believes the freeway closure may be discouraging visitors from coming into the city this weekend, despite favorable weather.
“The weather is beautiful today. It’s nice and sunny. So we have plenty of tables outside,” he said.
With the San Francisco Giants playing an away game, the restaurant had hoped fans would still gather to watch, but turnout during game time remained light.
“This is kind of like our off-season Saturday. A lot slower than our baseball weekend,” said Casandra Alarcon, general manager at MoMo’s.
Other small businesses in the Mission Bay and South of Market neighborhoods reported similar trends, saying most of their customers are regulars who live nearby rather than visitors.
“A little bit slower for sure. Before, we had tourists come and walk to the baseball park,” said Ajaree Safron, manager at Brickhouse Cafe & Bar.
Caltrans has shut down eastbound lanes between 17th and 4th streets to repave the 71-year-old roadway. The goal is to extend the life of the Bayshore Freeway by another decade.
City and transportation officials said the timing of the closure was intentional, noting fewer major events scheduled in San Francisco this weekend, aside from the Cherry Blossom Festival.
Westbound lanes remain open, and officials said traffic heading into San Francisco from the East Bay has not been significantly affected.
“Getting into the city, it wasn’t too bad. Regular [traffic], what we expect on a Saturday morning,” said visitor Andrea Inouye.
While the closure has posed challenges for businesses, some workers said they are taking it in stride.
“Hopefully, it’s not for too long and we get past it, and get back to our normal routine,” Bermudez said.
Despite early concerns about widespread gridlock, transportation officials said the region has avoided the worst-case scenario. Traffic remains heavy in areas near detours, but the anticipated “carmageddon” has not materialized, in part because many drivers chose to avoid the area or take public transit.
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Thanks to Carrie Brown for the westward view of our Saturday night sunset. The high today hit 68 at the airport – eight degrees above normal – but nowhere near the record for this date, which was 89 degrees back in 2016. The forecast suggests two more days of partly sunny, almost-70-degree weather, before the chance of rain returns.
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