Crime
Founder of an AI Tech startup accused of fraud and combining numbers with investors
Joanna Smith-Griffin, 33, CEO of startup AllHere Education, Inc. dealing with AI education accused of defrauding investors.
The Southern District of New York prosecuted Smith-Griffin securities fraud, wire fraud and aggravated identity theft. The grand jury indictment alleged that Smith-Griffin lied concerning the education platform’s funds and posed as a financial consultant to supply false information to investors. While acting as a financial consultant for AllHere Education, Smith-Griffin is accused of falsifying the corporate’s financial records mislead potential investors and inflate the worth of her company and its revenues.
AllHere Education is an AI-powered learning platform utilized in primary and secondary schools. Smith-Griffin has had little success integrating the K-12 platform into individual school districts in California and Georgia. However, the principal didn’t secure long-term contracts with school districts. She used these short-term partnerships to misrepresent to investors the reach and financial success of AllHere Education.
Smith-Griffin told potential AllHere investors that AllHere generated about $3.7 million in revenue in 2020, about $2.5 million in money and has major school district customers similar to New York City Department of Education (“NYC DOE”) and Atlanta Public Schools. In fact, AllHere generated roughly $11,000 in revenue in 2020, had roughly $494,000 in money, and had no contracts with many of the clients it represented, including the NYC DOE and Atlanta Public Schools.
Smith-Griffin continued to boost capital to support the startup, raising one other $10 million in funding. When the corporate collapsed financially, Smith-Griffin allegedly used the money injection to pay for an extravagant three-day wedding in Florida and a residence in North Carolina.
FBI Deputy Director James E. Dennehy commented on Smith-Griffin’s decision to prioritize her personal aspirations over the needs of an educational platform.
“Her alleged actions impacted the potential to improve the learning environment in core school districts by selfishly prioritizing personal expenses,” he said.
Smith-Griffin faces a compulsory two years in prison for the identity theft charge and a maximum of 20 years for every fraud charge. AllHere Education is currently in Chapter 7 bankruptcy.