Public Education Finance and Corruption

Los Angeles County prosecutors have charged former Los Angeles Unified School District technical project manager Hong "Grace" Peng and Innive owner Gautham Sampath in what they call one of the largest alleged money‑laundering and pay‑to‑play schemes in LAUSD history, accusing them of steering more than $22 million in My Integrated Student Information System contracts to Sampath’s firm between 2018 and 2022. Investigators allege Sampath then funneled over $3 million back to Peng through intermediaries, with text messages showing discussions about deleting chats, securing contracts and moving money. Peng, of Pasadena, faces felony counts of money laundering and illegally holding a financial interest in government contracts, while Sampath, of Flower Mound, Texas, faces similar charges plus aiding and abetting a public official; an arrest warrant has been issued for Peng and Sampath faces extradition to California. The district attorney frames the case as a "blatant abuse of public trust" that siphoned taxpayer dollars intended for students, while LAUSD says Peng resigned in late 2022 after searches of her home and office and that it is cooperating fully with authorities. Authorities also note that Sampath and Innive continue to hold government contracts in California and elsewhere, raising broader questions about vetting and oversight of public‑sector tech vendors.