The investigation that led to last week’s FBI raid at the home and office of schools Supt. Alberto Carvalho stemmed from a referral more than a year ago from New York prosecutors working a criminal fraud case involving a technology company with a Los Angeles Unified School District contract that went bust, according to sources familiar with the inquiry.
It was not until last week that the extent of the inquiry became public. The sources said grand jury subpoenas have been issued to individuals in Miami-Dade County Public Schools, where Carvalho served as superintendent before coming to L.A. in 2022. The subpoenas seek records from the district’s inspector general and the former Foundation for New Education Initiatives, according to a source familiar with the case.
The foundation was a nonprofit organization overeseen by Carvalho while serving in Miami. It is now called the…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.