Founder of artificial intelligence company used by schools in Los Angeles, NYC, Atlanta is arrested WSOC TV [Video]

NEW YORK — (AP) — The founder of an artificial intelligence company that supplied school districts in Los Angeles, New York and Atlanta with a chatbot to create learning plans for students was arrested on fraud charges Tuesday, accused of spending investor money on herself as her company spiraled into bankruptcy.

Joanna Smith-Griffin, 33, of Raleigh, North Carolina, was arrested in her home state and charged with securities and wire fraud, along with identity theft.

She founded ALLHere Education Inc., an artificial intelligence technology company that created “Ed” the chatbot. The Los Angeles Unified School District was among those that used the product for a time before shutting it down, citing the financial collapse of Smith-Griffin’s company.

Authorities say the company’s products were also used in other major school districts including New York City and Atlanta.

An indictment unsealed Tuesday in Manhattan federal court accused Smith-Griffin of making misrepresentations to investors that …