FBI Raids LAUSD Superintendent’s Office Amid Investigation of Failed $6 Million AI Contract
LOS ANGELES, Calif. — Federal agents executed coordinated raids on the home and office of Los Angeles Unified School District Superintendent Alberto Carvalho on February 26, as part of a growing investigation into a failed $6 million artificial intelligence contract awarded to education technology company AllHere. The FBI’s actions come amid concerns over a potential conflict of interest involving Carvalho and a former AllHere salesperson with whom he reportedly maintained close ties.
The contract, which included an upfront payment of $3 million, was intended to integrate AI tools into LAUSD’s classrooms but ultimately failed to deliver on promised outcomes. Public records and reports indicate that Debra Kerr, a former salesperson for AllHere, had her Miami residence raided on the same day as Carvalho’s properties. Kerr is said to have had a longstanding relationship with Carvalho dating back to his tenure as superintendent of Miami-Dade County Public Schools.
Jim Marshall, an FBI spokesperson, confirmed to the Miami Herald that agents searched a residence in Southwest Ranches, Florida, related to the investigation and have since cleared the scene. The simultaneous raids in Los Angeles and Miami underscore the multi-jurisdictional scope of the probe.
Carvalho, who assumed leadership of LAUSD in 2024 after a decade in Miami, authorized the contract with AllHere despite internal concerns about the company’s capacity and the propriety of the deal. The investigation is examining whether Carvalho’s prior connections to Kerr influenced the contract award, potentially violating procurement rules and ethical standards.
The FBI’s involvement highlights the federal government’s increasing scrutiny of public school spending on emerging technologies, especially when large sums of taxpayer money are at stake. The Department of Justice Office of the Inspector General has emphasized the importance of transparency and accountability in public contracts, particularly those involving innovative but unproven technologies.
LAUSD, the second-largest school district in the United States, has faced mounting pressure to modernize classrooms and improve educational outcomes through technology. However, critics argue that the rush to adopt AI solutions without thorough vetting can lead to costly failures and erode public trust.
Carvalho has not publicly commented on the investigation. LAUSD officials stated they are cooperating fully with federal authorities. Meanwhile, the FBI continues to gather evidence, reviewing communications and financial records related to the AllHere contract.
Education technology experts caution that while AI holds promise for personalized learning, districts must implement rigorous oversight to prevent conflicts of interest and ensure contracts serve students’ best interests. The ongoing investigation into LAUSD’s AI deal serves as a cautionary tale about the complexities of integrating cutting-edge technology into public education.
For further information on federal investigations into public contracts and school district oversight, see resources from the FBI Public Corruption Unit and the U.S. Department of Education Office of Inspector General.
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