NYC Gazette

Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, Assistant Director in Charge of the FBI's New York Field Office, announced charges against Joanna Smith-Griffin. The CEO of AllHere Education, Inc., a startup focused on artificial intelligence in education technology, faces allegations of securities fraud, wire fraud, and aggravated identity theft.

Smith-Griffin was arrested in North Carolina and will appear before a magistrate judge. The case is assigned to U.S. District Judge John G. Koeltl.

U.S. Attorney Damian Williams stated: “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.”

FBI Assistant Director James E. Dennehy commented: “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."

The indictment claims that from November 2020 through June 2024, Smith-Griffin engaged in fraudulent activities concerning AllHere Education. She reportedly inflated figures related to revenue and customer base during Series A financing round and subsequent periods until the company's collapse.

In spring 2021, she allegedly claimed AllHere had $3.7 million in revenue for 2020 when it only generated $11,000. It is also alleged that she misled about cash reserves and customer contracts with major school districts like NYC DOE and Atlanta Public Schools.

Smith-Griffin obtained nearly $10 million from investors while seeking an additional $35 million from private equity sources who chose not to invest. Some funds were used for personal expenses such as a house down payment and wedding costs.

Upon discovery by investors and accountants of financial discrepancies, Smith-Griffin attempted cover-ups by creating fake email accounts to send fraudulent documents.

AllHere is currently undergoing Chapter 7 bankruptcy proceedings with employees laid off under court-appointed control.

Smith-Griffin faces up to 20 years each for securities fraud and wire fraud charges plus two years for aggravated identity theft if convicted.

The FBI's efforts were commended by Mr. Williams as Assistant U.S. Attorney Matthew R. Shahabian leads prosecution under the Securities and Commodities Fraud Task Force.

The indictment remains allegations unless proven otherwise in court.