A confidential letter sent to Los Angeles Unified School District Superintendent Alberto Carvalho prior to his resignation warned that the school board possessed grounds to terminate his employment for cause, according to reports.
The letter detailed alleged ethics violations, including claims that a contractor under federal investigation paid for Carvalho's travel to Washington D.C. and that he failed to disclose financial benefits on required state forms, the Los Angeles Times reported.
These revelations surface four months after FBI agents searched Carvalho's home and district office on February 25 as part of a federal probe involving the education technology startup AllHere.
Two days after the FBI search, the school board placed Carvalho on paid leave. The board's letter to Carvalho outlined at least three instances of alleged undisclosed financial benefits. These included a trip to the White House in August 2023, reportedly paid for by AllHere, perks from at least two Dodger Stadium events, and travel to an education conference in Denver.
The letter also raised concerns about Carvalho's reported personal use of a district car and driver, which were intended solely for work-related purposes. Sources familiar with the letter indicated that these alleged actions could constitute grounds for dismissal "for cause" due to the benefits not being reported on his financial disclosure forms.
Carvalho's representative, however, disputed that the allegations warranted termination, stating that each issue had mitigating factors and that none of the cited actions, individually or collectively, justified firing him.
Under the terms of Carvalho's contract, a dismissal for cause would have forfeited any severance payment, whereas termination without cause would have entitled him to at least one year's salary, in addition to compensation for unused vacation time.
Carvalho initially sought an exit package exceeding $1 million, which included legal indemnification that would have required the district to cover his legal costs. The district countered with an offer of several months' pay, conditional on Carvalho dropping the indemnification request. It was following this exchange that the board sent the letter detailing potential grounds for termination.
When Carvalho publicly announced his resignation, he stated his belief that the district should remain focused on students and learning "without distraction."
A significant aspect of the federal investigation centers on Carvalho's relationship with AllHere, a now-defunct company that had been contracted by LAUSD to develop an artificial intelligence chatbot called "Ed." Carvalho unveiled the chatbot on August 4, 2023, during his annual superintendent's address, touting its potential to transform personalized education. Four days later, he attended a White House cybersecurity summit, for which he claimed to have paid his own travel expenses.
By that time, AllHere had already secured a contract with LAUSD valued up to $6.2 million. The company completed approximately $3 million worth of work before ceasing operations less than a year later. Carvalho's spokesperson indicated that district officials were aware of AllHere's contribution to his work-related travel and reviewed the expenses after the company's collapse in 2024, concluding no further action was required.
Carvalho's most recent four-year contract, which took effect 11 days before the FBI raid, provides an annual salary of $440,000 and includes a $50,000 retirement annuity contribution.