FBI Raid of Los Angeles School District – Allegations of Fraud and Separate Lawsuit Discriminating Against Whites
Just like in the Minnesota fraud case, where there are clearly billions of dollars in fraud, but Democrats are claiming political or racist motivations for the investigation, the left is now suggesting political motives behind the FBI raid of the Los Angeles school district and its superintendent’s home.
Alberto Carvalho has been an outspoken critic of President Trump’s immigration enforcement policies. He appeared alongside Gov. Gavin Newsom at a 2025 bill signing aimed at shielding schools from ICE agents and publicly condemned enforcement actions targeting students. His conflict with the federal government over immigration enforcement has been public and escalating. In several high-profile incidents over the last year, LAUSD staff physically blocked federal agents from entering schools.
However, he has a history of fraud investigations from his previous job, and the current investigation includes substantial evidence contained in public filings tied to a startup AI company.
FBI agents executed court-authorized search warrants on Wednesday, February 25, 2026, at the headquarters of the Los Angeles Unified School District in downtown Los Angeles and at the home of Superintendent Alberto Carvalho in the San Pedro neighborhood. A third location in Southwest Ranches, Florida, near Miami, where Carvalho previously worked, was also searched.
Federal authorities carried out the raid as part of a criminal investigation connected to AllHere, a failed AI startup that developed the district’s chatbot, “Ed.” Although officials have not publicly detailed the full scope of the probe, sources told the Los Angeles Times that the investigation involves Carvalho and centers on financial matters. The Florida property searched is linked through public records to Debra Kerr, a consultant who worked with AllHere and has longstanding ties to Carvalho from his time in Miami.
Carvalho has led LAUSD, the nation’s second-largest school district, since 2022, and previously served as Miami-Dade County Public Schools’ superintendent for nearly 14 years.
In 2020, while serving as superintendent in Miami-Dade, a nonprofit he founded and chaired, the Foundation for New Education Initiatives, solicited a $1.57 million donation from education technology company K12. The donation was sought while the district was considering a major contract with K12 for an online learning platform.
A 2021 investigation by the Miami-Dade Inspector General found no actual violations of ethics policies but concluded that the donation created an appearance of impropriety. The funds were ultimately distributed to teachers in the form of $100 gift cards.
In Los Angeles, LAUSD awarded a $6 million contract to AllHere to develop the AI chatbot “Ed,” ultimately spending about $3 million before the project was withdrawn. The company later filed for bankruptcy, and its founder, Joanna Smith-Griffin, was charged in 2024 with securities fraud, wire fraud, and aggravated identity theft. The partnership drew federal scrutiny, including concerns about student privacy.
Carvalho initially praised the chatbot as revolutionary but later described the company’s alleged misconduct as a “disturbing and disappointing house of cards.” He denied personal involvement in selecting AllHere and said he would form a task force to review the failed project, though no such task force was publicly established.
One week before the raid, the Department of Justice moved to join a federal lawsuit against LAUSD, alleging that the district’s decades-old desegregation program discriminates against white students.
The lawsuit, originally filed in January 2026 by the 1776 Project Foundation, challenges the district’s PHBAO program, which designates schools as “Predominantly Hispanic, Black, Asian or Other Non-Anglo” if 70 percent or more of the resident student population falls into those categories.
According to the complaint, PHBAO schools receive substantially more funding. They are capped at a maximum of 25 students per class, while non-PHBAO schools can have class sizes as large as 34.5 students. Because of these smaller class-size requirements, PHBAO schools are allocated more budgeted positions, including additional teachers, assistant principals, and counselors.
The Department of Justice argues that the program disadvantages approximately 100 non-PHBAO schools with higher white student populations and violates the Equal Protection Clause of the 14th Amendment by using race as a primary factor in funding and staffing decisions.
On February 19, 2026, Attorney General Pamela Bondi and Assistant Attorney General Harmeet Dhillon filed a motion to intervene. “Treating Americans equally is not a suggestion—it is a core constitutional guarantee,” Bondi said. “The era of race-based educational spoils systems has long since passed.”
The FBI has not disclosed specific allegations, and affidavits related to the search warrants remain sealed. LAUSD issued a statement confirming it is aware of the investigation and is cooperating with federal authorities, but has provided no additional details. The Board of Education scheduled a closed-session meeting to discuss the superintendent’s employment. No charges against Carvalho have been announced.
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