*Joanna Smith-Griffin, a tech entrepreneur once featured on Forbes’ “30 Under 30” list, faces over 40 years in prison after being charged with securities fraud, wire fraud, and identity theft.
Federal prosecutors allege that Smith-Griffin, founder of AI startup AllHere Education, misled investors about the company’s revenue and contracts, falsely claiming $3.7 million in 2021 revenue when the actual figure was $11,000, prosecutors said. She also overstated the number of school districts using the company’s technology. Prosecutors say she sold company shares after its valuation rose and used the funds for personal expenses, including her wedding and a new home, the New York Times reports.
According to federal prosecutors, Smith-Griffin, who was arrested in North Carolina on Tuesday, falsely stated that the New York City Department of Education and Atlanta Public Schools were utilizing her company’s technology. In reality, only two districts were using AllHere’s services, an educational technology startup she launched in 2016. The company “sold artificial intelligence software designed to increase classroom attendance and engagement in K-12 school districts,” per the FBI’s statement.
A district spokeswoman tells the Times that the “indictment and the allegations represent, if true, a disturbing and disappointing house of cards that deceived and victimized many across the country.”
BREAKING: AI founder arrested in fraud scheme
• Joanna Smith-Griffin (33) of Raleigh charged with fraud & identity theft
• Ran ALLHere Education, creator of chatbot “Ed” for schools
• Allegedly spent millions of investor funds on personal expenses
• Schools in LA, NYC,… pic.twitter.com/WmpLQz7cn7
— Los Angeles Magazine (@LAmag) November 20, 2024
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“Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses,” FBI Assistant Director in Charge James E. Dennehy said.
“AllHere is now in Chapter 7 bankruptcy, its employees have been laid off, and AllHere is under the control of a court-appointed bankruptcy trustee,” prosecutors said.
Smith-Griffin joins the ranks of other “30 Under 30” honorees like Sam Bankman-Fried, Charlie Javice, Martin Shkreli, and Caroline Ellison, who have faced indictment or imprisonment.
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