Full Breakdown
LAUSD Staffer and Tech Vendor Charged in $22 Million Money Laundering Scheme
3/27/2026, 9:56:50 AM
Overview of the Allegations
Hong “Grace” Peng, a former technical project manager for the Los Angeles Unified School District (LAUSD), and Gautham Sampath, the owner of the technology company Innive, are facing felony charges in connection with an alleged $22 million kickback scheme. The Los Angeles County District Attorney Nathan Hochman described the case as one of the largest money laundering schemes in the district's history, involving a pay-to-play arrangement that misappropriated taxpayer funds intended for educational services.
Details of the Scheme
Between 2018 and 2022, Peng is accused of facilitating the approval of contracts worth over $22 million to Innive, primarily for services related to the district's My Integrated Student Information System (MiSiS). Prosecutors allege that Sampath funneled more than $3 million in kickbacks back to Peng through various intermediaries. Hochman presented text messages between Peng and Sampath that allegedly demonstrate their collusion, including one where Peng expressed her advantage in being on a selection committee for contracts.
Legal Proceedings
Both Peng and Sampath have been charged with multiple felony counts, including money laundering and having a financial interest in an official contract. An arrest warrant has been issued for Peng, while an extradition warrant has been issued for Sampath, who resides in Texas. If convicted, each defendant faces up to seven years in county jail. The court has set bail at $500,000 for both individuals.
Background Context
The investigation into this scheme began in 2022 when an LAUSD employee learned of a potential connection between Peng and Sampath during a conference. This led to an alert to the district's inspector general, prompting further investigation. The case has unfolded amid a backdrop of turmoil for LAUSD, including the recent removal of Superintendent Alberto Carvalho following an FBI raid related to his dealings with an AI tech company.
Official Statements
In response to the charges, a representative for LAUSD stated that the district will continue to cooperate with law enforcement as appropriate. Hochman emphasized the seriousness of the allegations, stating, “This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers.”
Criticism and Opposition
The ongoing legal issues within LAUSD have drawn criticism from various stakeholders, particularly as the district faces a potential strike from teachers demanding higher pay. Critics argue that the financial mismanagement and corruption allegations further undermine the district's credibility and ability to serve its students effectively.
What's Next
As the legal proceedings unfold, both Peng and Sampath are expected to be arraigned at a later date. The investigation by LAUSD’s Office of Inspector General and the District Attorney’s Bureau of Investigation continues, with implications for other contracts and practices within the district.
