West
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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Hawaii
County housing official sentenced to nearly 4 years in prison – West Hawaii Today
A former Hawaii County housing development specialist was sentenced Thursday in federal court to 46 months in prison for taking bribes to facilitate a multimillion-dollar affordable housing credits scam.
Alan Scott Rudo, 59, who now lives in Cathedral City, Calif., was given until July 9 to surrender to the federal Bureau of Prisons when he was sentenced by U.S. District Judge Jill Otake in Honolulu.
Otake also ordered Rudo to pay $483,265 in a forfeiture judgment.
In a deal with prosecutors, Rudo pleaded guilty in August 2022 to conspiracy to commit honest services wire fraud and admitted to accepting about $1.9 million in bribes from Hilo attorneys Paul Sulla Jr. and Gary Zamber and former Big Island businessman Rajesh Budhabhatti, who now lives in Morrow Bay, Calif.
In return, Rudo agreed to use his official position in the Office of Housing and Community Development to ensure the county approved three affordable housing agreements (AHAs) benefiting the defendants’ development companies, Luna Loa Developments LLC, West View Developments LLC and Plumeria at Waikoloa LLC.
Through those AHAs, the development companies fraudulently raked in more than $11 million worth of land and excess affordable housing credits (AHCs).
Sulla, 79, Zamber, 56, and Budhabhatti, 65, were charged with conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was also charged with money laundering.
Rudo was the prosecution’s star witness at their trial, and on June 4, 2025, a federal jury in Honolulu convicted all three on all charges.
Zamber was sentenced on Jan. 30 to 70 months in prison. Budhabhatti was sentenced on Feb. 6 to 90 months in prison. And Sulla was sentenced on April 23 to 60 months in prison.
Zamber’s and Sulla’s law licenses also have been suspended, prohibiting them from practicing law in Hawaii.
“This sentencing marks the closing of an unfortunate chapter and underscores the importance of strong internal controls, clear segregation of duties, and effective program oversight,” said county Housing Administrator Kehaulani Costa in a statement. “The Office of Housing and Community Development remains committed to strengthening accountability and program integrity through enhanced compliance monitoring, improved documentation practices, and continued staff professional development.
“We are proud of the work undertaken to implement stronger safeguards, increase transparency, and reinforce public trust in the delivery of affordable housing programs serving Hawaii Island communities.”
A series of articles by Hilo resident Pat Tummons in her Environment Hawaii newsletter exposed questionable dealings in OHCD that ultimately led to an FBI investigation that resulted in these convictions.
When announcing charges in July 2022, then-U.S. Attorney Clare Connors praised the reporting by Environment Hawaii that first raised red flags about Rudo’s and his co-defendants’ schemes and, she said, led a county employee to alert the FBI.
The resultant public flap caused the County Council to order an internal audit, which in 2013 found OHCD had “inadequate internal controls” over its affordable housing credits program.
Costa said OHCD has since “strengthened internal controls, enhanced oversight and compliance monitoring, improved documentation and review procedures, expanded staff training, and implemented additional safeguards to support greater accountability, transparency, and long-term program integrity.”
Email John Burnett at john.burnett@hawaiitribune-herald.com.
Idaho
Idaho’s state park system remains a major draw more than a c…
The park, which today spans 4,800 acres was made possible in part through the Recreation & Public Purposes Act, which allowed the agency to sell public lands to state and local governments for recreational purposes.
The state park system expanded precipitously in the decades that followed, and today spans 28 state parks, 60,000 acres of land and 2,500 overnight campsites, far from the “embarrassment” Heyburn had once anticipated. It was less than two decades ago, however, the state was considering pulling back on some of its established public sites that had been frequented for decades.
In 2009, when the state was in the throes of the Great Recession, IDPR was at one point being considered to be parted out to other agencies. At the time, Just joined former IDPR director Yvonne Farrell to form the Friends of Idaho State Parks and garner support for the state’s park system — the agency ultimately survived the economic downturn, but not without a more than 80% cut to it budget, Just said.
Engagement in the parks has continued to be elevated since the COVID-19 pandemic, after people in Idaho and across the country were itching to get outside their homes and into the outdoors. In 2020, a record 7.6 million people visited Idaho state parks and IDPR has reported an average of 7.1 million visitors between 2020-2023.
While serving as a senator on the Idaho Legislature in 2023, Just served as a bill sponsor for an $100 million expansion of IDPR’s budget — the largest in state history, This was followed in 2024 with an allocation of $20 million in funds for deferred maintenance at state parks.
“COVID frankly showed us how much people love the state parks,” Just said. “When they were stuck at home, they got out in the fresh air where they could enjoy themselves and just inundated state parks. Not just here, but everywhere.”
McCandless covers Idaho politics for the Lewiston Tribune, Moscow-Pullman Daily News, Idaho Press of Nampa and Coeur d’Alene Press. He may be contacted at rmccandless@idahopress.com.
Montana
Sentinel stuns Gallatin to take inaugural State AA Baseball Title
BUTTE, Mont. — The Sentinel Spartans are the kings of Montana AA baseball.
In the inaugural season of AA baseball in the Treasure State, Sentinel took the title by winning three games in two days at the State AA Tournament, culminating with a 6-3 championship game victory over the Gallatin Raptors.
“It’s tough to find words right now,” said Sentinel head coach Brian Moser. “It was pretty emotional celebrating with the guys. Just really happy for them. What an opportunity. They took advantage of it. Very proud of them. Very appreciative of everything they’ve done for me and Sentinel High School and Sentinel baseball. It’s a great night to be a Spartan.”
Junior Stellan Ridley was stellar for Sentinel, with two triples, two runs scored, and two runs batted in. Kaden Thennis added two hits, two runs, and an RBI while also drawing a hit by pitch. Owen Dale had a hit and a run batted in.
“We have a great mentality,” said Ridley. “I’m so proud of these young guys. As a junior and the seniors, leading us to this and showing how discipline works. We faced some chirpy people, and we just stayed with our level of the game and we performed, as you can see. We won the State Tournament!”
Each win for Sentinel in the tournament came in vastly different fashion.
The Spartans earned a nine-inning victory in their quarterfinal against Butte on Thursday, then came back from a 6-0 deficit after 4.5 innings in their Friday semifinal matinee against the Glacier Wolfpack. But on Friday night, in a game that started at 10 p.m. and ended at 12:08 a.m., Sentinel took an early lead and never trailed enroute to a victory over a Raptors team that had lost just one game all season.
“I had never played a game that late. Going from the early game, it was good that we had that little gap, we got to recuperate and take a solid power nap and come back out here with a lot of energy. Because if we came out flat, there was no way. But we came out with a lot of energy, and we stuck it to them. I mean, that team was good,” said Ridley of their hot start in the title game.
“Baseball is a funny game. There’s a lot of ways to win, there’s a lot of ways to lose. Just happy for the guys for sticking to it and never giving up.” said Moser. “Honestly, it takes a couple of lucky bounces here and there in a State Tournament, and we got those and took advantage. Beat a really, really good Gallatin team tonight. Just extremely proud.”
Gallatin managed to tie the game at 3 apiece in the fifth inning before the Spartans scored one in the sixth and two in the seventh, allowing freshman pitcher Lucas Johansson to earn the win and the save on the mound.
“It’s a big deal. 3 runs are way more than 1. It takes a lot of what the offense can do away. So those were huge, huge runs,” said Moser.
Johansson picked up two of the three wins in the tournament for Sentinel, while fellow freshman Paxson Onstot had the victory in the triumph over Glacier.
“I’m not going to say that’s how we drew it up, but that hopefully gives them confidence to come back next year ready to go,” said Moser. “We’ll have a target on our backs, but that’s okay. A lot of youth, it’s fun.”
Keaton Elliott tossed the first 4.1 innings of the title game for Sentinel, allowing just two hits, three earned runs, and five walks while striking out two.
The title marked the end of a remarkable turnaround for a Spartans team that started the season with a record of 5-7 before winning 10 of their last 11.
“(We got) absolutely shamed by our entire school (at assembly). It sat with me this whole time and I hated that. I just had so much drive,” said Ridley. “What are they going to say now?”
Wyatt Ford pitched a complete game for Gallatin, allowing three earned runs, five hits and a hit by pitch while striking out 10 on 103 pitches.
Ford and Louis Musial had the Raptors only two hits on the night, a triple and double, respectively, while Harvey Kimmel had two runs batted in.
Sentinel ends their season with a record of 15-8, while Gallatin concluded their campaign at 18-2.
“I think Gallatin came in here a little cocky. One loss the whole season, thinking they were going to probably roll us,” said Ridley. “No. We showed them up. Their eyes got big, and they realized we’re not a team to mess with.”
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