FBI scrutiny of Carvalho, LAUSD began with tip from N.Y. prosecutors examining fraud at AI firm

"The investigation that led to last week's FBI raid at the home and office of Los Angeles Unified schools Supt. Alberto Carvalho was sparked more than a year ago and stemmed from a referral from New York prosecutors working a criminal fraud case involving a technology company with a school district contract that went bust, according to sources familiar with the investigation."

"In 2020 the Miami-Dade schools inspector general concluded a $1.57- million donation Carvalho helped secure for the foundation - by a firm with a pending district contract - did not violate state or district ethics policies, but created an appearance of impropriety."

"Federal authorities have not identified the target of the investigation, nor accused anyone of wrongdoing. But sources told The Times last week that it is connected to AllHere, the firm that developed a chatbot for the nation's second-largest school system."

An FBI investigation into Los Angeles Unified School District Superintendent Alberto Carvalho was initiated over a year ago following a referral from New York prosecutors investigating criminal fraud involving a technology company with a school district contract. Federal agents raided Carvalho's home and office, along with a property connected to Florida education consultant Debra Kerr. Grand jury subpoenas have been issued to individuals in Miami-Dade County Public Schools, where Carvalho previously served as superintendent. The subpoenas seek records from the district's inspector general and the former Foundation for New Education Initiatives. In 2020, Miami-Dade's inspector general concluded a $1.57 million donation Carvalho helped secure for the foundation created an appearance of impropriety, though it did not violate ethics policies. The investigation appears connected to AllHere, a firm that developed a chatbot for LAUSD.

Read at Los Angeles Times