Joanna Smith-Griffin, the founder of the artificial intelligence education technology company AllHere Education, Inc., has been indicted on charges of securities fraud, wire fraud, and aggravated identity theft for allegedly deceiving investors out of millions of dollars. Smith-Griffin, 33, was arrested earlier today in the Eastern District of North Carolina and will be presented before a magistrate judge this afternoon. The case is being handled by U.S. District Judge John G. Koeltl in Manhattan federal court.
According to the U.S. Attorney for the Southern District of New York, Damian Williams, Smith-Griffin orchestrated a deliberate scheme to inflate AllHere’s financials, falsely representing the company’s revenue, customer base, and cash reserves to secure significant investments under false pretenses. “The law does not turn a blind eye to those who distort financial realities for personal gain,” Williams stated.
The FBI’s Assistant Director in Charge, James E. Dennehy, further emphasized the severity of Smith-Griffin’s alleged actions, which he said harmed the potential for educational improvement. Dennehy accused Smith-Griffin of prioritizing personal expenses over the success of her educational technology company, which was designed to improve classroom attendance and engagement in K-12 schools.
The indictment outlines that, between November 2020 and June 2024, Smith-Griffin misrepresented key financial details to investors, beginning with AllHere’s Series A financing round in 2020. For example, Smith-Griffin allegedly told investors that AllHere had generated $3.7 million in revenue in 2020 and had $2.5 million in cash, claiming major customers like the New York City Department of Education (NYC DOE) and Atlanta Public Schools. In reality, AllHere had only $11,000 in revenue, about $494,000 in cash, and lacked contracts with the customers she claimed.
Throughout the life of the company, Smith-Griffin is accused of securing nearly $10 million from investors and attempting to raise an additional $35 million from a private equity firm, which ultimately decided against investing. She used some of the fraudulently obtained funds for personal expenses, including a down payment on a home and payments for her wedding.
The scheme began to unravel when AllHere’s investors and outside accountant uncovered discrepancies between the company’s actual financial situation and the figures Smith-Griffin had presented. In an attempt to cover up the fraud, Smith-Griffin allegedly created a fake email account posing as the company’s financial consultant and sent fraudulent documents to the company’s largest investor.
As a result of Smith-Griffin’s actions, AllHere has filed for Chapter 7 bankruptcy, with its employees laid off and the company now under the control of a court-appointed bankruptcy trustee.
Smith-Griffin faces charges of securities fraud (which carries a maximum sentence of 20 years in prison), wire fraud (also carrying a maximum sentence of 20 years), and aggravated identity theft (which mandates a two-year prison sentence).
The case highlights growing concerns over fraudulent practices in the rapidly expanding EdTech sector, with investors and stakeholders now more cautious about the claims made by founders in the industry.
