Disgraced LAUSD Employee Appears Emotionless in Court

Grace Peng accused of $22 million kickback scheme in scandal-plagued school district

Apr. 3, 2026 at 7:08pm

Got story updates? Submit your updates here. ›

An extreme close-up photograph of a pair of handcuffed hands, the metal cuffs reflecting a harsh, direct camera flash against a pitch-black background, creating a stark, gritty, investigative aesthetic.The harsh lighting and stark composition of this image conceptually illustrate the serious nature of the alleged kickback scheme within the Los Angeles Unified School District.Pasadena Today

Hong 'Grace' Peng, a former technical project manager for the Los Angeles Unified School District (LAUSD), appeared in court on Friday to face charges related to an alleged $22 million kickback scheme. Peng, 53, of Pasadena, California, pled not guilty to money laundering and having a financial interest in an official contract. The case comes as LAUSD reels from fraud claims against its superintendent.

Why it matters

The alleged kickback scheme involving a high-ranking LAUSD employee is the latest scandal to hit the nation's second-largest school district, which has been plagued by fraud allegations and financial mismanagement in recent years. The case raises concerns about corruption and the misuse of taxpayer funds intended for student education.

The details

Peng, who worked as a technical project manager for LAUSD, is accused of facilitating a multi-year, multi-contract 'pay-to-play' arrangement that siphoned millions of dollars from the school district. Her co-accused, Gautham Sampath, was a senior executive at Innive, the company that received the LAUSD contracts. The scheme was allegedly exposed in 2022 after one of the involved parties bragged about it at a professional conference, and an LAUSD employee reported the comments to district officials.

  • Peng appeared in court on Friday, April 3, 2026.
  • A $500,000 warrant was issued for Peng to appear in court.
  • Peng was ordered to surrender all passports and wear an ankle monitor with GPS tracking.
  • A preliminary setting hearing is scheduled for June 10, 2026.
  • Sampath is expected to be arraigned on April 17, 2026.

The players

Grace Peng

A 53-year-old former technical project manager for the Los Angeles Unified School District (LAUSD), who is accused of facilitating a $22 million kickback scheme.

Gautham Sampath

A senior executive at Innive, the company that received the LAUSD contracts as part of the alleged kickback scheme.

Alberto Carvalho

The superintendent of the Los Angeles Unified School District, who is facing fraud claims.

Nathan Hochman

The Los Angeles County District Attorney, who called the alleged racket the largest kickback scheme ever in the nation's second-largest school system.

Theresa McGonigle

The judge presiding over the case against Grace Peng.

Got photos? Submit your photos here. ›

What they’re saying

“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

“The 'multi-year, multi-contract pay-to-play arrangement ... siphoned millions of dollars from our schools.”

— Nathan Hochman, Los Angeles County District Attorney

What’s next

The judge in the case will decide on June 10 whether to allow Grace Peng to be released on her own recognizance or set bail. Gautham Sampath, Peng's co-accused, is expected to be arraigned on April 17.

The takeaway

The alleged kickback scheme involving a high-ranking LAUSD employee is the latest in a series of scandals to hit the district, raising concerns about corruption and the misuse of taxpayer funds intended for student education. The case highlights the need for stronger oversight and accountability measures within the school system.