Ex-LAUSD Worker Accused of Involvement in $22 Million Corruption Case
Former LAUSD Project Manager and Tech Vendor Charged in $22 Million Contract Scheme
LOS ANGELES – A former Los Angeles Unified School District (LAUSD) project manager and a Texas-based businessman face felony charges in connection with an alleged corruption scheme that misappropriated more than $22 million in school funds.
Hong "Grace" Peng, who previously served as a technical project manager for LAUSD, is accused of using her position to direct lucrative contracts to Innive, a technology firm owned by Gautham Sampath. According to prosecutors, the contracts primarily involved the district’s "MiSiS" student information system. In exchange for these contracts, Sampath is alleged to have routed and laundered over $3 million back to Peng through various intermediaries.
The investigation into Peng and Sampath culminated in late 2022, shortly after law enforcement executed search warrants at Peng’s home and workplace. Following this, she resigned from her position.
Both individuals face multiple charges, including money laundering and maintaining a financial interest in a public contract. If found guilty, they could each face up to seven years in county jail.
Los Angeles County District Attorney Nathan J. Hochman expressed concern over the case, stating, "This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers. We will not tolerate public officials who sell out their responsibilities or contractors who line their pockets by gaming the system."
An arrest warrant has been issued for Peng, while Sampath is currently in Texas, and an extradition warrant has been filed for him. Arrangements for arraignment dates for both defendants will be made once they are processed formally.
The Los Angeles County District Attorney’s Bureau of Investigation, alongside the LAUSD Office of Inspector General, continues to review evidence, which includes text messages and payment records mentioned in the charging documents.
