In a dramatic escalation of a federal investigation, FBI agents have conducted coordinated raids on multiple properties owned by the superintendent of the United States' second-largest school district. The operations targeted Alberto Carvalho, the head of the Los Angeles Unified School District (LAUSD), with agents executing search warrants at his $1.4 million home in San Pedro, California, and a separate residence in Miami, Florida.
Widespread Searches and Evacuations
Federal officials confirmed to Fox News Digital that the raids were part of a broader investigation, though the specific allegations remain undisclosed. In a significant development, staff at the LAUSD's downtown headquarters were evacuated on Wednesday to allow agents to thoroughly search Carvalho's office on the 24th floor. The scale of the operation suggests a serious and wide-ranging probe by federal authorities.
Connection to Failed AI Startup
While officials have not publicly stated the reason for the raids, speculation is mounting that they are connected to the school district's financial ties to a now-defunct artificial intelligence company named AllHere. According to the New York Times, LAUSD had engaged in a substantial $6 million deal with the startup. Notably, AllHere's founder was arrested for fraud in 2024, the same year the company filed for bankruptcy, raising questions about the nature of its dealings.
An additional search warrant was executed at a property in Southwest Ranches, Florida, which public records link to Debra Kerr, a former salesperson who worked with AllHere. The Los Angeles Times reported that Kerr has not been identified as a target of the investigation by federal officials or confidential sources, indicating the probe may be focused elsewhere.
Focus on Financial Issues
Sources familiar with the investigation told the LA Times that the raid specifically focused on Superintendent Carvalho, not the school district as a whole, and that it falls under the broad category of financial issues. However, the FBI has declined to release detailed information, noting that the court has sealed the affidavits related to the search warrants, maintaining a shroud of secrecy over the case.
In a brief statement, LAUSD confirmed it is cooperating with federal authorities and is aware of the situation involving Carvalho but provided no further details. The superintendent, who earns an annual salary of $440,000, has led the district since 2022, overseeing the education of nearly 400,000 students.
A History of Controversy
This federal crackdown represents the latest in a series of controversies surrounding Carvalho's career. In 2008, while an official at Miami-Dade County Public Schools, he was involved in a series of suggestive emails with a Miami Herald reporter, which he later denied constituted an affair after they became public.
Furthermore, in 2020, during his previous tenure, the Office of the Inspector General uncovered a $1.57 million donation to a nonprofit he chaired. The Inspector's office questioned the timing of the contribution and requested its return, highlighting ongoing scrutiny of his financial conduct.
Recent Legal and Political Clashes
The raids come amid other significant challenges for Carvalho and LAUSD. Just last week, the Justice Department filed a federal lawsuit against the school district, alleging that a desegregation program discriminated against white students. A district spokesman declined to comment on the pending litigation but reaffirmed LAUSD's commitment to educational opportunities for all students.
Additionally, Carvalho has clashed with federal immigration authorities. He turned away Homeland Security Investigations agents from two Los Angeles elementary schools last year and publicly criticized Immigration and Customs Enforcement (ICE) agents in July 2025 for allegedly urinating on the grounds of a Pico Rivera school, which he described as a despicable insult.
The Daily Mail has reached out to the FBI, LAUSD, Alberto Carvalho, and Debra Kerr for comment, but responses are pending as the investigation continues to unfold.
