On Tuesday, the creator of an AI company that was once listed on Forbes’ 30 Under 30 list was accused of defrauding investors.
AllHere Education founder Joanna Smith-Griffin, 33, was arrested in North Carolina and accused of identity theft, wire fraud, and securities fraud.
Smith-Griffin was accused by U.S. Attorney Damian Williams of the Southern District of New York of masterminding a planned and intentional plot to defraud investors in AllHere Education, Inc. by fabricating the company’s financial statements in order to get millions of dollars. Those who allegedly falsify financial facts for their own benefit are not exempt from the law.
Smith-Griffin allegedly deceived investors by claiming to have millions of dollars in revenue and connections to influential school systems, including the New York City Department of Education, according to the prosecution.
The Ed chatbot was created by AllHere and subsequently adopted by major school districts, such as the Los Angeles Unified School District. According to LA Schools’ website, Ed is an educational companion that helps children realize their boundless potential and uses student data to create individualized learning plans.
Additionally, according to the prosecution, Smith-Griffin embezzled company monies for personal use, including paying for her wedding and a down payment on her house.
AllHere filed for Chapter 7 bankruptcy and laid off workers prior to the accusations. A court-appointed bankruptcy trustee is in charge of it.
A sentence of over 40 years is possible for her combined crimes. A required two-year sentence is associated with the crime of aggravated identity theft.
Smith-Griffin’s alleged actions, according to FBI Assistant Director in Charge James E. Dennehy, harmed the possibility of better learning environments in large school districts by self-servingly putting personal expenses first.
Dennehy declared that the FBI would make sure that anyone who takes advantage of the promise of educational opportunity for the youngsters in our community would be disciplined.
Source
Note: Thank you for visiting our website! We strive to keep you informed with the latest updates based on expected timelines, although please note that we are not affiliated with any official bodies. Our team is committed to ensuring accuracy and transparency in our reporting, verifying all information before publication. We aim to bring you reliable news, and if you have any questions or concerns about our content, feel free to reach out to us via email. We appreciate your trust and support!
ChiefsFocus is a dedicated news writer with extensive experience in covering news across the United States. With a passion for storytelling and a commitment to journalistic integrity, ChiefsFocus delivers accurate and engaging content that informs and resonates with readers, keeping them updated on the latest developments nationwide.