A former Los Angeles Unified School District (LAUSD) employee and a technology company owner face felony charges in connection with an alleged $22 million pay-to-play scheme involving district contracts.
Los Angeles County District Attorney Nathan Hochman announced the charges against Hong “Grace” Peng, a former LAUSD technical project manager, and Gautham Sampath, owner of the tech firm Innive. Prosecutors say the scheme funneled taxpayer-funded contracts meant for schools to Sampath’s company over several years.
Details of the Alleged Scheme
Authorities allege the contracts, primarily linked to LAUSD’s My Integrated Student Information System (MiSiS) between 2018 and 2022, were directed largely to Innive. Prosecutors claim Peng played a key role in awarding these contracts, which totaled $22 million.
Investigators assert that Sampath funneled over $3 million back to Peng through intermediaries. Prosecutors cited text messages between the two discussing deleting chats, securing contracts, and moving money, indicating efforts to conceal their arrangement.
Charges and Legal Proceedings
Peng, who resides in Pasadena, is charged with felony counts including money laundering and holding a prohibited financial interest in government contracts. Sampath, based in Flower Mound, Texas, also faces aiding and abetting a public official charges. An arrest warrant has been issued for Peng, and Sampath faces extradition to California. No court dates have been scheduled.
Peng resigned from LAUSD in late 2022 after search warrants were executed on her home and workplace. Innive and Sampath continue to hold government contracts in California and elsewhere.
Official Responses
District Attorney Hochman characterized the case as a “blatant abuse of public trust,” emphasizing that officials and contractors who abuse their responsibilities will be held accountable.
LAUSD stated it is fully cooperating with authorities and reiterated its commitment to ethics and compliance. Innive has not responded to requests for comment.
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