Joanna Smith-Griffin, the founder and CEO of AllHere Education Inc., has been charged with securities fraud, wire fraud, and identity theft. She is accused of fraudulently obtaining nearly $10 million from investors, using some of the money for personal expenses like paying for her home and financing her wedding. Prosecutors allege that Smith-Griffin misrepresented the company’s revenue and client base to potential investors. AllHere Education’s employees have been laid off and the company is under the control of a court-appointed bankruptcy trustee. The indictment reveals that Smith-Griffin used a fake external consultant’s name to communicate false financial information to investors and the board of directors. This resulted in her removal as CEO and the company’s bankruptcy filing. AllHere Education was known for its artificial intelligence chatbot designed to improve communication between schools and families. The company had entered into a large contract with the Los Angeles Unified School District to develop an artificial chatbot named “Ed.” Despite Smith-Griffin’s previous recognition in Forbes and Inc., the allegations against her have led to a criminal investigation that could have far-reaching consequences for investors and educational institutions across the country.
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Founder of AI startup accused of defrauding investors out of $10 million
