Former LAUSD Staffer Charged in $22M Money Laundering Scheme

Prosecutors say the IT employee funneled contracts to a co-conspirator's company and received millions in kickbacks.

Mar. 27, 2026 at 10:00am

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A former IT employee at the Los Angeles Unified School District, Hong 'Grace' Peng, is accused of using her position to steer over $22 million in contracts to a technology company owned by Gautham Sampath. Prosecutors say Sampath then funneled more than $3 million in taxpayer funds back to Peng in an alleged money laundering scheme spanning from 2018 to 2022.

Why it matters

This case highlights concerns over corruption and misuse of public funds within the nation's second-largest school district. The alleged scheme deprived LAUSD resources that could have gone towards student programs and services, raising questions about oversight and accountability measures.

The details

Peng, a former technical project manager at LAUSD, is accused of working to illegally steer contracts to Innive, a company owned by Sampath. The contracts were primarily related to the district's student information system. Prosecutors say text messages show the two discussing methods to launder the money, including setting up additional companies to obscure the flow of funds.

  • The alleged scheme took place between 2018 and 2022.
  • Peng resigned in 2022 after a search warrant was served at her home and workplace.

The players

Hong 'Grace' Peng

A 56-year-old former IT employee at the Los Angeles Unified School District who is accused of funneling over $22 million in contracts to a co-conspirator's company.

Gautham Sampath

A 56-year-old Texas resident who owns the technology company Innive and is accused of receiving over $3 million in kickbacks from the alleged money laundering scheme.

Alberto Carvalho

The current superintendent of the Los Angeles Unified School District, who was placed on paid leave after the FBI raided his home and office in connection with a separate investigation.

Nathan Hochman

The Los Angeles County District Attorney who announced the charges against Peng and Sampath.

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What they’re saying

“I broke all law for you already lol,”

— Hong 'Grace' Peng, Former LAUSD IT employee

“What r the other opportunities in Lausd. That we can exploit. Any other area.”

— Gautham Sampath, Owner of Innive

“This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers.”

— Nathan Hochman, Los Angeles County District Attorney

What’s next

Peng and Sampath are scheduled to be arraigned, but a date has not yet been set. If convicted, they each face up to seven years in county jail.

The takeaway

This case underscores the need for stronger oversight and accountability measures within the Los Angeles Unified School District to prevent the misuse of public funds intended for student programs and services.