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Ex-LAUSD Employee, Tech Vendor Charged In $22M Contracting Scheme

The scheme involved steering $22 million in contracts to a Texas company and laundering $3 million back to a former LAUSD manager, officials said.

  • On Thursday, Los Angeles County District Attorney Nathan Hochman announced felony charges against former Los Angeles Unified School District manager Hong Grace Peng and vendor Gautham Sampath for an alleged $22 million pay-to-play contracting scheme.
  • Prosecutors allege that between 2018 and 2022, Peng steered contracts for the district's My Integrated Student Information System to Sampath's company, Innive, while Sampath laundered over $3 million back to Peng through intermediaries.
  • Text messages show Peng discussing methods to hide the money, noting, "We need to come up with lot of companies... at least 3-4 to take out the money." Another message stated, "I broke all law for you already lol."
  • Both defendants face up to seven years in county jail if convicted. Arrest warrants have been issued for Peng and extradition warrants for Sampath, who resides in Flower Mound, Texas.
  • Officials urge organizations with contracts involving Innive to contact the Public Integrity Division at 257-2475. Investigators describe the scheme as one of the largest money-laundering scandals in the district's history.
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LA Daily News broke the news in Los Angeles, United States on Thursday, March 26, 2026.
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