Founder of AI startup accused of scamming investors out of $10 million

Joanna Smith-Griffin, the founder and CEO of AllHere Education Inc., has been charged with securities fraud, wire fraud, and identity theft for allegedly defrauding investors of nearly $10 million. Prosecutors claim that Smith-Griffin lied to investors about the revenue and number of clients the company had. She allegedly used some of the money obtained to pay for her home and finance her wedding. AllHere Education, which aimed to improve communication between school districts and families using artificial intelligence, has since laid off all its employees and is now under the control of a court-appointed bankruptcy trustee. Smith-Griffin purportedly falsified financial reports and misled investors about the company’s contracts with educational institutions. The indictment details how she allegedly used an external consultant’s name to communicate false information about the company’s financials to investors and the board of directors. AllHere Education entered into a significant contract with the Los Angeles Unified School District to develop an artificial chatbot named “Ed” using generative artificial intelligence. Despite her previous recognition in Forbes 30 Under 30 and Inc.’s Female Founders 250 list, Smith-Griffin is now facing serious legal consequences for her actions. The Los Angeles Unified School District expressed disappointment and plans to protect its rights in light of the allegations.

Photo credit
www.usatoday.com