Los Angeles public schools superintendent Alberto Carvalho resigned effective Sunday, June 21, 2026, following an FBI search of his home and the Los Angeles Unified School District headquarters. The resignation comes after the district paid $3 million for an AI chatbot from a company whose founder was later indicted for fraud, raising questions about the stewardship of public funds in the nation's second-largest school system.
Carvalho was placed on paid leave less than 1 year ago, two days after the FBI served search warrants. His resignation letter, addressed to “students, families, teachers, staff, and community,” cited a desire for schools to remain focused on students and learning “without distraction,” while claiming “historic progress” during his tenure.
The federal investigation appears to center on a contract between the district and the education technology company, AllHere. The district had contracted AllHere to create an AI chatbot named “Ed.” In 2024, Carvalho heavily promoted the deal with AllHere, paying the company $3 million before dropping its dealings approximately three months later. AllHere subsequently collapsed into bankruptcy, and its founder, Joanna Smith-Griffin, was later charged with securities and wire fraud, along with identity theft.
Authorities have not accused Carvalho of any crimes. Earlier this year, he denied wrongdoing and sought reinstatement as head of the district. His legal representation, Holland & Knight, stated that Mr. Carvalho “respects the rule of law and the investigative process and has always acted in the best interests of students and within the bounds of the law.”
Elite Spending, Public Cost
Carvalho, who earned an annual salary of $440,000, became superintendent of LA schools four years ago on a four-year contract. Weeks before the FBI raid in February of the same year, he began a new four-year contract for the same salary, according to school board meeting documents.
The district’s Board of Education voted unanimously to place Carvalho on leave after the FBI searches. Upon receiving his resignation, the board stated its commitment to “stability, continuity, and continued progress through strong leadership,” emphasizing its focus on “providing every student with a high-quality education, supporting our dedicated workforce, and maintaining the trust of the communities we serve.” Andrés Chait will continue as acting superintendent.
The Los Angeles Unified School District serves more than 500,000 students, making it the nation’s second-largest district. The $3 million expenditure on a failed AI chatbot, coupled with the superintendent's substantial salary, represents significant public resources diverted from core educational functions.
A Pattern of Impropriety?
Before his tenure in Los Angeles, Carvalho spent nearly 14 years leading Miami-Dade County Public Schools. In 2020, a nonprofit he founded to support Miami schools drew scrutiny after it solicited a $1.57 million donation from an online education company doing business with the district. The district’s inspector general determined the donation created the “appearance of impropriety” and recommended its return, according to The Miami Herald. Instead, the foundation distributed the money to Miami-Dade teachers as $100 gift cards.
Carvalho’s background includes advocating for Miami’s immigrant students, and he spoke openly about his own experiences as a young recent arrival from Portugal. During his time in Miami, he was praised for improving graduation rates and academic achievement among Black and Hispanic students.
In February of the same year as the LAUSD headquarters search, the FBI also searched a third location near Miami. The Miami Herald reported this Florida property belonged to Debra Kerr, who previously worked with AllHere, the company at the center of the LAUSD investigation.