Joanna Smith-Griffin, an entrepreneur who was featured in 'Forbes' prestigious "30 under 30" list three years ago, was charged with defrauding investors millions for her AI startup AllHere Education.
Last week, Smith-Griffin was arrested in North Carolina for securities fraud, wire fraud, and identity theft.
In documents obtained by Axios, from Nov. 2020 through June 2024, she "engaged in a scheme to defraud investors." The startup company used AI to help K-12 schools find solutions to reduce classroom absenteeism by sending text messages to parents reminding them to check on their children and engage with families using a chatbot, providing resources for assignments.
Smith-Griffin, 33, allegedly "misled investors, employees, and customers by inflating AllHere's revenue, cash position, and customer base," fraudulently obtaining $10 million. She deceived investors by falsely claiming she had millions in revenue, which was not the case, as AllHere had only made a small revenue of $11,000. She is said to have used the fraudulently-obtained funds to pay for her house and her lavish three-day wedding in Florida, among other non-business-related expenses.
As CEO, she was the sole person to have control over AllHere's bank accounts, corporate records and email accounts, as well as being in communication with its investors, clients, and outside financial consultants.
The documents claim that between May and June, two of AllHere's investors and its outside financial accountant "discovered discrepancies between the AllHere financials" that Smith-Griffin "was sending to investors and AllHere's true financials."
To conceal her crime, she allegedly created a fake AllHere email address, pretending to be the company's real financial consultant and sending false financial and client information to investors. After finding this out, AllHere's board of directors terminated her as the company's CEO. AllHere also furloughed most of its employees and closed. It then filed for Chapter 7 bankruptcy.
She faces up to 40 years in prison, if convicted.
Wedding-focused TikToker Candice Nikeia, AKA relivesocial, uncovered photos from Smith-Griffin's lavish nuptials.
@relivesocial From Forbes 30 Under 30 list to allegations of defrauding, Joanna Smith-Griffin, founder of an AI tech start up called AllHere Education, is facing 40 years in prison for using company funds for personal uses including a lavish 3 day wedding in Miami. 💔 . Wedding Date: July 3, 2021 Wedding Planner: LK Signature Events Wedding Planner: Birch Event Design Photographer: Erica Melissa Photographer: Auguro Weddings Florals: Birch Event Design Venue: Moore Building Invitations: LK Signature Events Caterer: Creative Edge Parties Cake: Sweet Guilt by Angelica Lighting & Decor: Birch Event Design Lighting & Decor: PSID Group Music: DWP LIVE Factory Wedding Officiant: Marry Me Mendez Hair & Makeup: Britney Michelle Hair & Makeup: Natasha Gross Wedding Dress: Pronovias Wedding Dress: Vainglorious Brides . #weddingweekend #weddingday #weddingplanner #luxurywedding #luxurybride #bridallook
♬ original sound - Wedding Content Creator
She found that the disgraced entrepreneur's three-day wedding celebration was held at the Moor Building in Miami in July 2021, which included elaborate flower arrangements, live music performers, a painter and more.
Originally published on Enstarz
