Ex-LAUSD Employee and Tech Business Owner Facing Allegations in $22 Million Money Laundering Case
Two Charged in Alleged $22 Million Money Laundering Scheme Linked to LAUSD
In a significant development, a former employee of the Los Angeles Unified School District (LAUSD) and a tech company owner have been charged in an alleged money laundering scheme amounting to $22 million. The Los Angeles County District Attorney’s Office announced that text messages between the suspects indicate a coordinated effort to illegally transfer funds away from the school district.
“Our office has unveiled charges in what is reportedly the largest money laundering operation in LAUSD’s history,” stated Los Angeles County District Attorney Nathan Hochman.
The two individuals charged are Hong “Grace” Peng of Pasadena and Guatham Sampath of Flower Mound, Texas. Prosecutors allege that Peng directed district contracts to Sampath, who is accused of funneling approximately $3 million back to her.
Evidence presented by Hochman includes text messages where Sampath allegedly urged Peng to erase their communications. “Mr. Sampath texts Ms. Peng and says, ‘Delete all the WhatsApp chats that they have had,’” Hochman explained. “If anybody sees these texts about these internal things, it will be a problem.”
In response to the charges, LAUSD released a statement confirming its cooperation with ongoing investigations. “LAUSD is committed to full compliance with all applicable laws, and we expect our employees and business partners to comply with the highest standards of ethics and integrity,” the district stated. “The District will continue to cooperate fully with relevant authorities.”
United Teachers Los Angeles has raised concerns about the district’s oversight. “They won’t even agree to fully stock school restrooms with toilet paper, paper towels and soap,” said Julie Van Winkle, vice president of United Teachers Los Angeles. “And yet there always seems to be money for these contracts. As it’s coming out, it seems that there really hasn’t been a lot of oversight for these contracts.”
These allegations emerge following unrelated raids on the home and office of LAUSD Superintendent Alberto Carvalho, who was placed on administrative leave last month. Carvalho has denied any wrongdoing, and the alleged actions involving Peng and Sampath have only minimal overlap with his tenure.
Arrest warrants have been issued for Peng, while an extradition warrant has been issued for Sampath. Attempts to contact both suspects for comment have been unsuccessful.
