LAUSD, or the Los Angeles Unified School District, is the second largest school district in the U.S., with over 500,000 students.

Its budget is enormous, reaching billions of dollars annually. The head of the organization, Alberto Carvalho, was quite a well-known figure in American education.

As an immigrant from Portugal, he served as the superintendent of Miami-Dade County Public Schools, significantly increasing graduation rates and earning national superintendent awards. He was often cited as a prime example of a successful educational administrator in the U.S.

However, in February 2026, the FBI conducted simultaneous searches of Carvalho's home and the LAUSD headquarters. The investigation expanded to include related individuals' homes in Florida, making national news.

Initially, many suspected political motives behind the investigation. However, based on the information released so far, the core of the investigation appears to be related to money and contract issues rather than politics.

Particularly controversial was the AI chatbot project that LAUSD was pursuing.

In 2024, LAUSD announced a multimillion-dollar contract to introduce an AI chatbot named 'Ed' for students. Carvalho even held a press conference to promote it as an innovative educational service. However, shortly after, the edtech company AllHere, which was the contract partner, collapsed, and its founder was charged with federal fraud for deceiving investors.

The issues did not end there.

Federal investigators began looking into why such a company secured a major contract with LAUSD, whether the selection process was appropriate, and if there were any inappropriate relationships between specific individuals and companies.

During the investigation, Florida education consultant Debra Kerr was also included in the inquiry. She was known to have had a professional relationship with Carvalho in the past. Importantly, as of now, Carvalho has not been charged with any criminal offenses.

The fact that the FBI conducted searches does not automatically imply guilt. In fact, federal investigators have not disclosed specific allegations, and the search warrants remain sealed.

However, the mere fact that the FBI searched the homes and offices of a superintendent is a tremendous shock in American society.

Ultimately, the LAUSD Board of Education placed Carvalho on paid leave, and he announced his resignation.

He maintained that he had done nothing wrong and claimed he was stepping down to prevent further confusion for the students.

Personally, this incident highlights that contract issues in large public institutions in the U.S. can explode at any time.

Schools are places for teaching children, but they are also massive organizations with billions of dollars at stake. Technology companies, construction firms, and consulting agencies are constantly vying for school district contracts. The judgment of a single superintendent can lead to contracts worth tens of millions of dollars. Ultimately, the core of this incident is not just a personal issue of one superintendent.

This serves as a case study on how thoroughly public institutions must vet new technologies and how crucial transparency is in large contract processes.

A figure once regarded as the best superintendent in the U.S. is now being mentioned in connection with an FBI investigation.

While a final conclusion has yet to be reached, this incident is likely to remain a significant topic in the history of American educational administration for a long time.