Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOANNA SMITH-GRIFFIN with securities fraud, wire fraud, and aggravated identity theft in connection with defrauding investors in AllHere Education, Inc., the startup artificial intelligence education technology company she founded, out of millions of dollars. SMITH-GRIFFIN was arrested earlier today in the Eastern District of North Carolina and will be presented this afternoon before a magistrate judge in that district. The case has been assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, Joanna Smith-Griffin orchestrated a deliberate and calculated scheme to deceive investors in AllHere Education, Inc., inflating the company’s financials to secure millions of dollars under false pretenses. The law does not turn a blind eye to those who allegedly distort financial realities for personal gain.”
FBI Assistant Director in Charge James E. Dennehy said: “Joanna Smith-Griffin allegedly misrepresented the composition of her startup company to defraud investors of millions and masqueraded as a financial consultant to perpetuate the scheme once discrepancies were discovered. Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses. The FBI will ensure that any individual exploiting the promise of educational opportunities for our city’s children will be taught a lesson.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
From at least in or about November 2020 through at least in or about June 2024, SMITH‑GRIFFIN engaged in a scheme to defraud investors in AllHere Education, Inc. (“AllHere”), an educational technology startup she founded at Harvard that sold artificial intelligence software designed to increase classroom attendance and engagement in K-12 school districts. Beginning as early as AllHere’s Series A financing round in November 2020 and continuing through the collapse of the company in June 2024, SMITH-GRIFFIN misrepresented AllHere’s revenue, customer base, and cash to her investors.
For example, in the spring of 2021, SMITH-GRIFFIN told potential AllHere investors that AllHere had generated approximately $3.7 million in revenue in 2020, had approximately $2.5 million in cash on hand, and had major school district customers like the New York City Department of Education ("NYC DOE") and Atlanta Public Schools. In fact, AllHere had generated approximately $11,000 in revenue in 2020, had approximately $494,000 in cash, and did not have contracts with many of the customers it represented, including the NYC DOE and Atlanta Public Schools.
SMITH-GRIFFIN’s misrepresentations continued through AllHere’s collapse, during which time she was able to obtain nearly $10 million from investors and sought an additional $35 million from a private equity investor who ultimately decided not to invest. She used some of the fraudulently obtained funds to put a down payment on her house in North Carolina and pay for her wedding. SMITH-GRIFFIN also embezzled corporate funds for her own benefit. When AllHere’s investors and outside accountant accidentally discovered the discrepancy between AllHere’s actual financials and what SMITH-GRIFFIN was telling investors, SMITH-GRIFFIN tried to cover up her crimes, going so far as to create a fake email account for AllHere’s outside financial consultant, which she used to send additional fraudulent financial documents to her largest investor.
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.
SMITH-GRIFFIN, 33, of Raleigh, North Carolina, is charged with securities fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.
Mr. Williams praised the outstanding work of the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Matthew R. Shahabian is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
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