Joanna Smith-Griffin, an AI startup CEO featured on a notable ’30 Under 30′ list in 2021, has been charged with defrauding investors out of $10 million. Federal prosecutors have charged Smith-Griffin, the founder of AllHere Education, an education-technology startup spun out of Harvard’s Innovation Lab. Prosecutors allege that Smith-Griffin inflated the revenues of her startup and lied about contracts with schools to obtain $10 million in investment.
AllHere Education was designed to help reduce student absenteeism through an AI chatbot. The indictment claims that Smith-Griffin deceived investors by stating that AllHere had generated $3.7 million in revenue in the previous year and had $2.5 million on hand, while the actual revenue was only $11,000, with approximately $494,000 on hand.
Startup CEO charged with fraud
Prosecutors also allege that her claims of securing contracts with the New York City Department of Education and the Atlanta Public Schools were false. AllHere Education, which was initially recognized for using AI to improve communication between families and schools, is now in bankruptcy proceedings, and the company furloughed its staff earlier this year. Smith-Griffin, who holds a bachelor’s degree from Harvard Extension School and has a background as a teacher, was arrested on the morning of November 19 in North Carolina.
US Attorney Damian Williams emphasized the gravity of distorting financial realities for personal gain, stating that the law does not overlook such actions. Smith-Griffin joins a group of young entrepreneurs previously spotlighted for their achievements, including Sam Bankman-Fried, Charlie Javice, and Martin Shkreli, who have faced criminal charges after achieving publicity and financial success.
