Prosecutors allege that Smith-Griffin deceived investors for years, claiming in 2021 that AllHere had $3.7 million in revenue the previous year and $2.5 million on hand, while in reality, the company had only made $11,000 and had about $494,000 on hand. The government also claims that the company's assertions of having the New York City Department of Education and the Atlanta Public Schools as customers were false. Smith-Griffin was arrested on November 19 in North Carolina.
Key takeaways:
- Joanna Smith-Griffin, founder of AllHere Education, has been charged with fraud by federal prosecutors for allegedly inflating the startup's revenues and lying about contracts with schools.
- Smith-Griffin is accused of securing $10 million in investment under false pretenses. The company is currently in bankruptcy proceedings.
- AllHere Education, which originated from Harvard's Innovation Lab, created an AI chatbot aimed at reducing student absenteeism.
- Smith-Griffin was recognized on Forbes 30 Under 30 list in 2021 and was also featured in Inc. Magazine's 2024 list of female founders.