Former Los Angeles Unified School District (LAUSD) information technology manager Hong “Grace” Peng and technology vendor Gautham Sampath have been charged in an alleged contracting and money-laundering scheme. The scheme allegedly funneled more than $22 million in public school funds to Sampath’s company.
According to prosecutors, this case is one of the largest money-laundering schemes in the history of LAUSD. Peng, 53, is from Pasadena and she served as a technical project manager for LAUSD’s information technology division.
She is charged with one felony count of money laundering and one felony count of having a financial interest in a contract or purchase made in an official capacity.
“Between 2018 and 2022, Peng, who served as a technical project manager for LAUSD, is accused of illegally participating in the awarding of contracts primarily related to the district’s My Integrated Student Information System (known as MiSiS) to Innive…”#dirtyLAUSD pic.twitter.com/x3EHZgje9D
— Oleada LAUSD Parents (@OleadaParents) March 27, 2026
Sampath, also 53, hails from Flower Mound, Texas and is the owner of tech vendor Innive. He has been charged with three felony counts, including money laundering, having a financial interest in a contract or purchase made in an official capacity, and aiding and abetting a government official to have a financial interest in such a contract.
An arrest warrant has been issued for Peng and an extradition warrant for Sampath. However, an arraignment date has not yet been set. Prosecutors said that between 2018 and 2022, Peng used her role on LAUSD’s My Integrated Student Information System, known as MiSiS, to steer contracts to Innive.
Those contracts, tied largely to the MiSiS platform that handles student data and enrollment, added up to more than $22 million. Sampath is accused of routing and laundering over $3 million back to Peng through third-party intermediaries, turning contracts meant for a public school system into a private pay-to-play arrangement.
Los Angeles County District Attorney Nathan J. Hochman said, “This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers.”
Watch: D.A. Nathan Hochman is giddy to share the blatant texts exchanged by alleged co-conspirators Hong “Grace” Peng (LAUSD) and Gautham Sampath (Innive), accused of laundering millions in contract kickbacks: https://t.co/ujTMjJ6K97
Details here: https://t.co/sIhIFoLzas pic.twitter.com/DKCgz3ZeMt
— Esotouric’s Secret Los Angeles (@esotouric) March 27, 2026
He then added, “This vendor, working with an LAUSD project manager, allegedly carried out a multi‑year, multi‑contract pay‑to‑play arrangement that siphoned millions of dollars from our schools. We will not tolerate public officials who sell out their responsibilities or contractors who line their pockets by gaming the system. Both will be held fully accountable.”
The probe had first come to light in April 2022, when LAUSD’s Office of Inspector General, in coordination with the district attorney’s Bureau of Investigation began a deeper look into the contracting pattern involving Innive. By late 2022, a search warrant had been issued at Peng’s home and workplace, after which she resigned from LAUSD.
The case is now being prosecuted by Deputy District Attorney Casey Higgins of the Public Integrity Division. If the duo is convicted of all the charges, they face up to seven years in county jail. Prosecutors also urged organizations that have done business with Innive to come forward. They noted that Sampath’s company continues to hold government contracts in California and other states.
