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Former LAUSD employee charged in $22M corruption scheme

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Published  March 27, 2026 9:14am PDT
LAUSD
FOX 11

The Brief

    • A former LAUSD project manager and a tech vendor owner face felony charges for an alleged $22 million "pay-to-play" contract scheme.
    • Hong "Grace" Peng is accused of steering contracts to Gautham Sampath’s company, Innive, which then allegedly laundered $3 million back to her.
    • The full extent of Innive's current government contracts across California and the U.S. remains under investigation by authorities.

LOS ANGELES - A former Los Angeles Unified School District (LAUSD) employee and a Texas businessman are facing serious felony charges following a multi-year investigation into a corruption scheme that diverted over $22 million in school funds.

What we know:

Between 2018 and 2022, Hong "Grace" Peng, a technical project manager for LAUSD, allegedly used her position to award massive contracts to Innive, a technology company owned by Gautham Sampath.

These contracts were primarily related to the district’s "MiSiS" student information system. 

Prosecutors allege that in exchange for these contracts, Sampath routed and laundered more than $3 million back to Peng through various intermediaries.

Peng resigned from her position in late 2022 after investigators served search warrants at her home and office. 

Both individuals now face charges including money laundering and having a financial interest in a public contract. If convicted, both defendants could face up to seven years in county jail.

What they're saying:

"This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers," said Los Angeles County District Attorney Nathan J. Hochman. "We will not tolerate public officials who sell out their responsibilities or contractors who line their pockets by gaming the system."

What's next:

An arrest warrant has been issued for Peng, while an extradition warrant has been issued for Sampath, who is located in Texas. 

Arraignment dates for both defendants will be scheduled once formal processing is complete.

The Los Angeles County District Attorney’s Bureau of Investigation and the LAUSD Office of Inspector General are continuing to examine evidence, including text messages and payment records cited in the charging documents.

What you can do:

The District Attorney’s office is seeking information from other organizations that may have active contracts with Innive. 

If your organization has worked with this vendor, you are encouraged to contact the Public Integrity Division at (213) 257-2475 or submit information via the official online form.

The Source: This report is based on official charging documents and public statements released by the Los Angeles County District Attorney’s Office.

LAUSDLos AngelesCrime and Public Safety