Founder of U.S. AI edtech startup charged with defrauding investors

U.S. federal prosecutors have charged the founder of artificial intelligence startup AllHere Education with defrauding investors out of nearly $10 million, the latest example of authorities taking a tougher stance against young tech companies that may have misrepresented data in their infancy. An indictment unsealed Tuesday in Manhattan federal court charges Joanna Smith-Griffin with securities fraud, wire fraud and aggravated identity theft, accusing her of defrauding investors of millions of dollars. She was arrested early Tuesday morning in North Carolina. Prosecutors say Smith-Griffin, 33, misrepresented AllHere's revenues, number of customers signed up and cash balance. Based on that information, prosecutors say, she was able to raise nearly $10 million from investors and later used some of that cash to make a down payment on her North Carolina home and pay for her wedding. In August, AllHere filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code. Employees of the company have been fired, according to prosecutors.Smith-Griffin could face a lengthy prison sentence of up to 20 years for both securities fraud and wire fraud offenses.