Explosive confidential letter reveals why LAUSD chief Alberto Carvalho suddenly resigned
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A confidential letter sent to Los Angeles Unified School District Superintendent Alberto Carvalho before his resignation warned the embattled schools chief that the board had potential grounds to fire him, revealing what happened behind the scenes before his abrupt exit.
The letter said Carvalho could be terminated “for cause” over several alleged ethics violations, including claims that a district contractor, now at the center of an FBI investigation, paid for his travel to Washington, DC, and that he failed to disclose financial benefits on required state forms, according to the LA Times.
The information comes four months after FBI agents searched Carvalho’s home and district office on February 25 as part of a federal investigation involving the education technology startup AllHere.
Two days later, the school board put Carvalho on paid leave, but at the time, there was no public sign that they were also urging him to resign.
The board’s letter listed at least three instances in which Carvalho allegedly received financial benefits that he did not disclose.
These included an August 2023 trip to the Joe Biden White House, which sources said was paid for by AllHere, tickets and possible perks for 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 meant only for work.
Sources familiar with the letter told the outlet the alleged conduct could provide grounds to dismiss Carvalho for cause because the benefits were not reported on his required financial disclosure forms.
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Carvalho initially sought an exit package worth more than $1 million, along with legal indemnification that would have allegedly required the district to cover his legal costs.
The district countered with an offer of several months’ pay if Carvalho dropped the indemnification request. The board then sent the confidential letter warning that it had potential grounds to terminate him for cause.
Under Carvalho’s contract, a dismissal for cause would have eliminated any severance payment, while termination without cause would have entitled him to at least one year’s salary. He would still have been eligible to receive compensation for unused vacation time under either scenario.
Carvalho’s representative disputed that the allegations warranted termination, saying each issue had mitigating factors and that none of the cited actions, individually or collectively, justified firing him.
When Carvalho publicly announced his resignation, he said he was stepping down because he believed the district should remain focused on students and learning “without distraction.”
A major focus of the federal investigation is Carvalho’s relationship with AllHere, the now-defunct technology company hired by LAUSD to develop an artificial intelligence chatbot known as “Ed.”
Carvalho unveiled the chatbot during his annual superintendent’s address at Disney Hall on Aug. 4, 2023, promising it would transform personalized education. Four days later, he traveled to a White House cybersecurity summit, where he claims he paid for his airfare and hotel.
By then, AllHere had already secured a contract worth up to $6.2 million. The company completed about $3 million worth of work before collapsing less than a year later.
Carvalho’s spokesperson said district officials had long known about AllHere’s contribution toward his work-related travel and reviewed the expenses after the company collapsed in 2024, concluding no action was necessary.
Carvalho’s latest four-year contract took effect just 11 days before the FBI raid. It pays him $440,000 annually and includes a $50,000 retirement annuity contribution.