Joanna Smith-Griffin, the CEO of AllHere Education and a 2021 Forbes 30 Under 30 honoree, has been charged with defrauding investors out of $10 million.
Federal prosecutors in New York allege Smith-Griffin lied about her company’s revenue and contracts for years, securing funds under false pretenses.
AllHere, an AI-focused startup born out of the Harvard Innovation Lab, developed a chatbot aimed at reducing student absenteeism.
Despite high-profile recognition and a notable contract with the Los Angeles Unified School District, the company filed for bankruptcy and furloughed its staff earlier this year.
According to the indictment, Smith-Griffin fabricated claims about the company’s financial standing during a 2021 fundraising round, including overstating revenues and cash reserves.
Prosecutors allege the startup reported $3.7 million in 2020 revenue when it had only earned $11,000. Claims that major school districts like New York City’s Department of Education were clients were also allegedly false.
“Lying to investors distorts markets and undermines trust,” U.S. Attorney Damian Williams said in a statement.
Smith-Griffin, arrested on November 19 in North Carolina, is the latest young entrepreneur celebrated by Forbes to face criminal charges, joining controversial figures like Sam Bankman-Fried and Martin Shkreli.
She was also featured in Inc. Magazine’s 2024 list of female founders for leveraging AI in education.
AllHere’s investors included Rethink Capital Partners and Spero Ventures. Harvard confirmed Smith-Griffin earned a bachelor’s degree from its Extension School in 2016.
Prosecutors urge individuals with relevant information to come forward as the case unfolds.
