$22 Million Stolen From LA School Kids — LAUSD’s Biggest Corruption Scandal Exposed
A former LAUSD IT employee Hong “Grace” Peng and tech company owner Gautham Sampath face felony charges in what prosecutors call one of the district’s largest alleged money laundering schemes worth $22 million.
Between 2018 and 2022, Peng allegedly used her role as technical project manager to steer school district contracts — totaling $22 million — to Sampath’s tech firm Innive through a pay-to-play arrangement.
Investigators reveal Sampath allegedly funneled over $3 million back to Peng through intermediaries as kickbacks. Prosecutors say recovered messages between the two show discussions about deleting chats, securing contracts and secretly moving money.
Peng, a Pasadena resident, now faces felony charges of money laundering and illegally holding financial interest in government contracts. Sampath, from Flower Mound, Texas, faces similar charges plus aiding and abetting a public official.
Peng resigned from LAUSD in late 2022 after search warrants hit her home and workplace. An arrest warrant was issued for her. Meanwhile, Sampath faces extradition, yet his company still holds government contracts nationwide.
If convicted, both face up to 7 years in jail. DA Nathan Hochman warned that corrupt officials and contractors will be held fully accountable. LAUSD pledged full cooperation with authorities in the ongoing investigation.
