Former LAUSD IT Manager and Tech Vendor Owner Charged in Alleged $22 Million “Pay-to-Play” Money Laundering Scheme

Rex Ballard
7 hours ago
3 min read

LOS ANGELES — A former information technology project manager at the Los Angeles Unified School District (LAUSD) and the owner of a Texas-based tech company have been charged with felonies in what prosecutors call one of the largest money laundering schemes in the district’s history.

Hong “Grace” Peng, 53, of Pasadena, and Gautham Sampath, 53, of Flower Mound, Texas, face multiple felony counts after an alleged scheme that funneled more than $22 million in district contracts — primarily for work on LAUSD’s My Integrated Student Information System (MiSiS) — to Sampath’s company, Innive. In return, Sampath allegedly routed approximately $3 million in kickbacks back to Peng through various intermediaries between 2018 and 2022.

its.lausd.org

MiSiS Home - My Integrated Student Information System - Information Technology Services

Los Angeles County District Attorney Nathan Hochman announced the charges on March 26, 2026, describing a classic “pay-to-play” arrangement. Peng, who worked as a technical project manager in LAUSD’s IT department from 2018 until her resignation in late 2022, is accused of illegally steering the contracts to Innive while serving on selection committees.

Prosecutors say text messages recovered during the investigation provide key evidence. In one exchange, Peng allegedly told Sampath he was “lucky” she was on a committee, adding, “Because you have me…lol…I broke all the laws for you already lol.” Another message reportedly referenced “opportunities in LAUSD that we can exploit.” Hochman publicly read several of the messages in a video statement released by the DA’s office.

theorg.com

Gautham Sampath ITIL - Co-Founder, CEO at Innive | The Org

Charges and Potential Penalties

Peng is charged with two felonies: money laundering and having a financial interest in a contract made in her official capacity (conflict of interest).
Sampath faces three felonies: money laundering, having a financial interest in a contract made in an official capacity, and aiding and abetting a government official in such a violation.

If convicted as charged, each could face up to seven years in county jail. An arrest warrant has been issued for Peng; Sampath faces extradition from Texas. Arraignment dates have not yet been set. Both are presumed innocent until proven guilty in court.

How the Alleged Scheme Unfolded

The investigation began in April 2022 after an LAUSD supervisor flagged a potential conflict of interest. Search warrants were executed at Peng’s home and workplace, and she resigned shortly afterward. LAUSD says it cooperated fully with authorities and was unaware of the full scope until the charges were filed.

Sampath’s company, Innive, specializes in education technology services and has held contracts with school districts across the country.

LAUSD headquarters in downtown Los Angeles, where the alleged scheme involving district contracts was centered. (Photo: Los Angeles Times) — ***LAUSD headquarters*** *in downtown Los Angeles, where the alleged scheme involving district contracts was centered. (Photo: Los Angeles Times)*

latimes.com

Ex-staffer charged in $22-million LAUSD money laundering scheme - Los Angeles Times

Video Coverage for Full Context

To see the story in motion and hear the alleged text messages read aloud:

DA Hochman’s official video breaking down the evidence (including text messages):

NBC Los Angeles news report (March 27, 2026 segment):

https://www.youtube.com/watch?v=W7YDey-G4fI

LAUSD, the nation’s second-largest school district, has faced multiple recent scandals involving finances and contracts. Officials emphasized that taxpayer dollars meant for students were allegedly diverted in this case.

The case remains active. Updates will be posted as arrest or court developments occur. For the full criminal complaint, visit the Los Angeles County District Attorney’s website.