Joanna Smith-Griffin
| Joanna Smith-Griffin | |
|---|---|
| Born: | 1991 United States |
| Charges: | Securities fraud, Wire fraud, Aggravated identity theft |
| Sentence: | Pending (faces up to 42 years) |
| Facility: | |
| Status: | Awaiting trial |
Joanna Smith-Griffin is an American entrepreneur and the founder of AllHere Education, an artificial intelligence education technology startup. In November 2024, she was arrested and charged with securities fraud, wire fraud, and aggravated identity theft for allegedly defrauding investors out of nearly $10 million.[1] Smith-Griffin, who was named to the Forbes 30 Under 30 list for Education in 2021, faces up to 42 years in federal prison if convicted on all counts.[2]
Summary
Joanna Smith-Griffin founded AllHere Education in 2016 while studying at Harvard University's Extension School. The company developed an AI-powered chatbot designed to reduce student absenteeism by improving family engagement with schools. AllHere secured contracts with major school districts across the country, including a $6 million contract with the Los Angeles Unified School District.[3]
According to federal prosecutors, between November 2020 and June 2024, Smith-Griffin engaged in a scheme to defraud investors by grossly misrepresenting AllHere's financial performance and customer base. She allegedly told investors the company had generated $3.7 million in revenue in 2020 when actual revenue was approximately $11,000, and claimed the company had $2.5 million in cash when the actual amount was approximately $494,000.[1]
Smith-Griffin was arrested at her home in Raleigh, North Carolina, on November 19, 2024. AllHere is now in Chapter 7 bankruptcy proceedings, with its employees laid off and operations under the control of a court-appointed bankruptcy trustee.[1]
Background
Early Life and Education
Joanna Smith-Griffin received a bachelor's degree from Harvard Extension School in 2016. Prior to founding AllHere, she worked as a charter school teacher and family engagement director in Boston.[3]
AllHere Education
Smith-Griffin founded AllHere Education in 2016 through Harvard Innovation Labs, a university startup incubator. The company's core product was an AI-powered chatbot designed to improve student attendance by facilitating communication between schools and families. The technology was marketed as a solution to chronic absenteeism, a significant challenge facing school districts nationwide.[3]
AllHere secured contracts with several major school districts, including:
- Los Angeles Unified School District ($6 million contract)
- New York City Department of Education
- Atlanta Public Schools
In 2021, Smith-Griffin was named to the Forbes 30 Under 30 list for Education, a recognition that helped legitimize the company and attract additional investment.[2] She was also named to Inc. magazine's Female Founders 250 list in 2024, shortly before her arrest.[4]
Indictment and Criminal Charges
The Fraud Scheme
According to the indictment unsealed on November 19, 2024, Smith-Griffin engaged in a multi-year scheme to defraud investors from approximately November 2020 through June 2024.[1]
Prosecutors allege that Smith-Griffin made numerous material misrepresentations to attract investment, including:
- Revenue misrepresentation: Telling investors AllHere generated $3.7 million in revenue in 2020 when actual revenue was approximately $11,000
- Cash reserves: Claiming the company had approximately $2.5 million in cash when actual cash reserves were approximately $494,000
- Customer contracts: Falsely representing that AllHere had contracts with major school districts it did not actually have
Through these misrepresentations, Smith-Griffin allegedly obtained nearly $10 million from investors. She also sought an additional $35 million from a private equity investor, who declined to invest.[1]
Misuse of Funds
The indictment further alleges that Smith-Griffin used her control over AllHere's bank accounts to transfer at least $600,000 in company funds to her personal accounts. Prosecutors claim she used PayPal and Zelle to make repeated wire transfers under $10,000, and used the funds to:[1]
- Make a down payment on her house in North Carolina
- Pay for her wedding in 2021
Cover-Up Attempts
When AllHere's investors and outside accountant discovered discrepancies between the company's actual financials and what Smith-Griffin had reported, she allegedly attempted to cover up the fraud. According to prosecutors, she created a fake email account impersonating AllHere's outside financial consultant and used it to send additional fraudulent financial documents to her largest investor.[1]
Criminal Charges
Smith-Griffin faces three federal charges:[1]
- Securities fraud (18 U.S.C. § 1348) - Maximum 20 years imprisonment
- Wire fraud (18 U.S.C. § 1343) - Maximum 20 years imprisonment
- Aggravated identity theft (18 U.S.C. § 1028A) - Mandatory minimum 2 years imprisonment (consecutive)
If convicted on all counts, she faces a maximum sentence of 42 years in federal prison.
Arrest and Court Proceedings
Smith-Griffin was arrested at her home in Raleigh, North Carolina, on November 19, 2024, by federal agents. She was ordered to appear in the Southern District of New York for arraignment.[1]
U.S. Attorney Damian Williams stated: "The law does not turn a blind eye to those who allegedly distort financial realities for personal gain."[1]
AllHere's Collapse
Following the fraud allegations, AllHere Education filed for Chapter 7 bankruptcy. All employees were laid off, and a court-appointed bankruptcy trustee now controls the company's remaining assets. The collapse left school districts that had contracted with AllHere scrambling to find alternatives, with Los Angeles Unified notably having invested $6 million in the company's technology.[3]
Forbes 30 Under 30 Connection
Smith-Griffin's case adds to a growing pattern of Forbes 30 Under 30 honorees facing federal fraud charges, a phenomenon sometimes referred to as the "Forbes 30 Under 30 to Prison Pipeline." Other notable cases include:[2]
- Elizabeth Holmes - Theranos founder, convicted of fraud, serving 11+ years
- Charlie Javice - Frank founder, convicted of fraud
- Sam Bankman-Fried - FTX founder, convicted of fraud, sentenced to 25 years
- Caroline Ellison - Alameda Research CEO, sentenced to 2 years
- Billy McFarland - Fyre Festival founder, served federal prison time
- Martin Shkreli - Pharmaceutical executive, served federal prison time
Public Statements
As of December 2024, Smith-Griffin has not made public statements regarding the charges against her.
Terminology
- Securities fraud: The crime of deceiving investors or manipulating financial markets through false or misleading information about securities or investments.
- Wire fraud: A federal crime involving the use of electronic communications (phone, email, internet) to defraud someone of money or property.
- Aggravated identity theft: The federal crime of using another person's identity in connection with a felony, which carries a mandatory minimum sentence.
- Chapter 7 bankruptcy: A form of bankruptcy that involves liquidating a company's assets to pay creditors, resulting in the company ceasing operations.
See also
- Wire Fraud
- Securities Fraud
- Forbes 30 Under 30 to Prison Pipeline
- Elizabeth Holmes
- Charlie Javice
- Sam Bankman-Fried
- Caroline Ellison
- Federal Sentencing Guidelines and Offense Enhancements
Frequently Asked Questions
Q: What did Joanna Smith-Griffin do?
Joanna Smith-Griffin was charged with securities fraud, wire fraud, and aggravated identity theft for allegedly defrauding investors in AllHere Education, the AI education startup she founded. Prosecutors allege she misrepresented the company's revenue ($3.7 million claimed vs. $11,000 actual) and fabricated customer contracts with major school districts. She allegedly used investor funds to buy her house and pay for her wedding.
Q: How much prison time does Joanna Smith-Griffin face?
Joanna Smith-Griffin faces up to 42 years in federal prison if convicted on all counts. The charges include securities fraud (maximum 20 years), wire fraud (maximum 20 years), and aggravated identity theft (mandatory minimum 2 years consecutive). Her case is pending in the Southern District of New York.
Q: What was AllHere Education?
AllHere Education was an AI-powered education technology startup founded by Smith-Griffin in 2016 through Harvard Innovation Labs. The company developed a chatbot to reduce student absenteeism and secured contracts with major school districts including LAUSD. The company is now in Chapter 7 bankruptcy.
Q: Was Joanna Smith-Griffin on Forbes 30 Under 30?
Yes, Joanna Smith-Griffin was named to the Forbes 30 Under 30 list for Education in 2021. She joins other Forbes 30 Under 30 honorees who faced federal fraud charges, including Elizabeth Holmes, Charlie Javice, Sam Bankman-Fried, and Caroline Ellison.
Q: When was Joanna Smith-Griffin arrested?
Joanna Smith-Griffin was arrested on November 19, 2024, at her home in Raleigh, North Carolina. The indictment was unsealed the same day by the U.S. Attorney's Office for the Southern District of New York.
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 U.S. Department of Justice, "CEO of Artificial Intelligence Startup Company Charged With Defrauding Investors," November 19, 2024, https://www.justice.gov/usao-sdny/pr/ceo-artificial-intelligence-startup-company-charged-defrauding-investors
- ↑ 2.0 2.1 2.2 TechCrunch, "Federal prosecutors have charged another Forbes 30 Under 30 alum with fraud," November 20, 2024
- ↑ 3.0 3.1 3.2 3.3 The 74 Million, "Feds Charge Once-Lauded AllHere AI Founder in $10M Scheme to Defraud Investors," November 2024
- ↑ PR Newswire, "AllHere Founder and CEO Joanna Smith-Griffin Named to Inc.'s 2024 Female Founders 250 List," April 2024