Joanna Smith-Griffin, founder of AllHere Education Inc., has been arrested on securities fraud, wire fraud, and identity theft charges. Prosecutors allege she deceived investors about her startup’s revenue and client contracts and misused funds for personal expenses, including a home purchase and wedding.
- Allegations Against Smith-Griffin:
- Accused of falsely claiming $3.7 million in revenue for 2020, when the actual figure was just $11,000.
- Misrepresented partnerships with major school districts; only two had contracts with AllHere Education.
- Allegedly used an external consultant’s name in fake emails to mislead investors and her board of directors.
- Misuse of Funds:
- Prosecutors say Smith-Griffin secured nearly $10 million from investors.
- Transferred $600,000 to her personal account for a home down payment and wedding expenses.
- Impact on AllHere Education:
- Filed for Chapter 7 bankruptcy in August 2024, resulting in liquidation of assets.
- Furloughed most employees in June and is now under court-appointed trusteeship.
- Company’s Background:
- Founded in 2016, AllHere Education developed an AI chatbot, “Ed,” to assist students and families.
- Secured a multi-million dollar contract with Los Angeles Unified School District in 2023.
- Previously recognized in Forbes’ 30 Under 30 and Inc.’s Female Founders 250 list.
- Legal Developments:
- Smith-Griffin was removed as CEO after the board uncovered discrepancies.
- No attorney was listed for her at the time of reporting.
Joanna Smith-Griffin’s case highlights the risks of fraudulent practices in tech startups. If proven guilty, the charges may not only affect her legacy but also shake investor confidence in AI-focused ventures.
