LAUSD Superintendent Carvalho Resigns Amid FBI Investigation Into AI Contract

placing students first has always guided my work
Carvalho's stated reason for resigning, even as federal investigators examined his tenure.

When institutions built to serve the young become entangled in the interests of the powerful, the cost is measured not only in dollars but in trust. Alberto Carvalho, superintendent of the Los Angeles Unified School District, resigned on June 21, 2026, as federal investigators examined a failed multimillion-dollar AI contract and the relationships that shaped it. His departure closes a four-year chapter of claimed progress while leaving open the deeper question every public institution must eventually answer: who, in the end, was being served?

  • FBI agents searched Carvalho's home and office simultaneously in February 2026, signaling the investigation had moved well beyond routine inquiry.
  • A $6 million chatbot contract awarded to startup AllHere collapsed in scandal after its founder faced embezzlement accusations and whistleblowers raised alarms about student data privacy.
  • Public records revealed that a longtime personal associate of Carvalho's helped facilitate the contract — and her Miami home was also searched by federal agents.
  • Carvalho framed his resignation as selfless stewardship, citing record graduation rates and equity gains, even as the circumstances of his exit told a more complicated story.
  • Acting superintendent Andrés E. Chait now holds the district together while LAUSD's board works to restore public confidence and federal scrutiny continues without resolution.

Alberto Carvalho resigned as superintendent of the Los Angeles Unified School District on June 21, 2026, ending four years at the helm of the nation's second-largest school system under the shadow of an active FBI investigation. In his statement, he cast the decision as an act of sacrifice — placing students and learning above the distraction his continued presence might cause. He pointed to real milestones: record graduation rates, post-pandemic academic recovery, and gains for disadvantaged students. The school board had unanimously reappointed him just months earlier.

But the investigation tells a more unsettling story. In February 2026, federal agents executed search warrants at Carvalho's home and office on the same day, removing materials while district staff were evacuated from headquarters. The probe centers on AllHere, a startup hired in 2023 to build a student-facing AI chatbot. The district paid $3 million upfront on a $6 million contract — money that evaporated when the company collapsed amid embezzlement accusations against its founder and serious concerns about how student data was being handled.

Public records show the contract was facilitated with help from Debra Kerr, an edtech salesperson with a long personal and professional history with Carvalho stretching back to the 2000s. Her Miami home was also searched by FBI agents. Authorities have not announced charges or detailed the investigation's scope.

The LAUSD board pledged stability and reaffirmed its commitment to students and community trust. Acting superintendent Andrés E. Chait will lead the district until a permanent replacement is found. Carvalho's resignation removes him from office — but the questions at the heart of the investigation remain: how the contract was awarded, who stood to benefit, and whether the systems meant to protect hundreds of thousands of students were ever truly in place.

Alberto Carvalho stepped down as superintendent of the Los Angeles Unified School District on June 21, 2026, ending a four-year tenure leading the nation's second-largest school system. His resignation came months after FBI agents executed search warrants at his home and office, and amid an ongoing federal investigation into a failed artificial intelligence contract worth millions of dollars.

In his resignation statement, Carvalho framed his departure as an act of institutional stewardship. He wrote that he believed the district's schools needed to remain focused on students and learning without distraction, and that placing students first had always guided his work. He pointed to what he called historic achievements during his time in the role: record-breaking graduation rates, improved academic performance compared to pre-pandemic levels, and gains in equitable progress for disadvantaged students. The school board had unanimously reappointed him just months earlier in the fall of 2025, he noted, signaling confidence in his leadership at that moment.

Yet the investigation shadowing his departure tells a different story. In February 2026, video captured multiple investigators executing a search warrant at Carvalho's residence, carrying items in and out. Simultaneously, staff members at LAUSD headquarters were evacuated as agents conducted a similar search of the district offices. A home linked to a longtime associate of Carvalho's was also searched, according to reports citing FBI Miami.

The probe centers on AllHere, a now-defunct startup that Carvalho's administration contracted to build a student-facing chatbot. In 2023, the district awarded the company a $6 million contract, with $3 million paid upfront. The project collapsed in 2024 after the company's founder, Joanna Smith-Griffith, faced accusations of embezzling funds. The deal also drew scrutiny over data privacy concerns and whistleblower allegations about how student information was being handled.

Public records reviewed by the Los Angeles Times show that the AllHere contract was facilitated with help from Debra Kerr, an edtech salesperson who had maintained a long personal and professional relationship with Carvalho dating back to the 2000s. Kerr's Miami home was among those targeted during the FBI searches related to the LAUSD investigation.

The LAUSD Board responded to Carvalho's resignation with a statement affirming its commitment to stability and public trust. The district said its focus remained unchanged: providing every student with a high-quality education, supporting its workforce, and maintaining community confidence. Acting superintendent Andrés E. Chait will continue leading the district until a permanent replacement is named.

Authorities have not publicly commented on the specific nature of the investigation or what charges, if any, might be under consideration. The resignation removes Carvalho from his position but does not resolve the questions that prompted the federal scrutiny—questions about how a multimillion-dollar contract was awarded, who benefited from it, and what safeguards existed to prevent conflicts of interest in a district serving hundreds of thousands of students.

Because I believe our schools must remain focused on students and learning without distraction, I am resigning as Superintendent of LAUSD effective today, June 21, 2026.
— Alberto Carvalho, in his resignation statement
The Board remains steadfast in its commitment to ensuring stability, continuity, and continued progress through strong leadership.
— LAUSD Board, in response to Carvalho's resignation
A Conversa do Hearth Outra perspectiva sobre a história
Inventor

Why would a superintendent resign if he believed the board still supported him?

Model

Because the investigation itself becomes the distraction. Even if he did nothing wrong, the presence of federal agents, the searches, the questions—they consume institutional energy. Sometimes stepping aside is the only way to let the organization move forward.

Inventor

But doesn't resigning look like an admission of guilt?

Model

It can look that way to some people. But it can also look like someone choosing the institution over himself. The board's statement didn't ask him to leave. He chose to.

Inventor

What was the actual problem with the AllHere contract?

Model

A startup got $6 million to build a chatbot for students. The founder allegedly stole money. Student data may have been mishandled. And the contract was brokered by someone who had a long personal relationship with the superintendent. That's the conflict of interest piece—it raises questions about whether the deal was made on merit or connection.

Inventor

Did Carvalho personally benefit?

Model

That's what the investigation is trying to determine. We don't know yet. The searches suggest authorities think there's something to find, but no charges have been filed.

Inventor

What happens to the district now?

Model

An acting superintendent takes over while they search for a permanent leader. The district has to rebuild public trust while a federal investigation continues. That's a difficult position for any organization.

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