AI CEO Joanna Smith-Griffin arrested for fraud [Video]

The founder of an AI startup once featured on Forbes’ “30 Under 30” list was charged Tuesday with defrauding investors.

Joanna Smith-Griffin, 33, who founded AllHere Education, was arrested in North Carolina and charged with securities fraud, wire fraud, and identity theft.

U.S. Attorney Damian Williams of the Southern District of New York claimed that “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. The law does not turn a blind eye to those who allegedly distort financial realities for personal gain.”

Prosecutors claimed that Smith-Griffin lied to investors, telling them she had millions in revenue that didn’t exist and claimed to have contracts with major school districts like the New York City Department of Education that didn’t exist.

AllHere created the “Ed” chatbot, which was eventually used by big school districts, including …