LAUSD’s Hong Peng texts to Gautham Sampath revealed after allegedly stealing $39M
A scandal of epic proportions has rocked the Los Angeles School District, with an IT employee accused of embezzling millions of dollars and receiving hefty kickbacks in return. The employee in question, Hong “Grace” Peng, is facing serious charges that could land her behind bars for years.
The incriminating evidence against Peng comes from a series of text messages exchanged between her and Gautham Sampath, the CEO of Texas tech company Innive. In these texts, Sampath asks Peng about potential opportunities within the LAUSD that they can exploit, to which she responds affirmatively, indicating that there are many such opportunities.
According to prosecutors, Peng and Sampath were involved in a pay-to-play scheme where Peng funneled over $22 million in contracts to a company owned by Sampath between 2018 and 2022. Sampath then allegedly funneled more than $3 million in kickbacks back to Peng through various intermediaries.
The criminal complaint reveals that Innive received a whopping $39 million in payments from LAUSD between 2017 and 2023. The text messages between Peng and Sampath suggest that they were fully aware of the illegality of their actions, with discussions about deleting incriminating chats and setting up additional companies to conceal their activities.
Peng is facing charges of money laundering and having a financial interest in a contract made in an official capacity, while Sampath is facing charges of money laundering, having a financial interest in a contract, and aiding a government official to have a financial interest in a contract.
One particularly damning email from Peng to Sampath reads, “You’re so lucky I’m on the selection committee,” to which Sampath responds, “Why did you say Innvie is lucky?” Peng replies, “Because you have me… I broke all law for you already lol.”
If convicted, both Peng and Sampath could be looking at seven years in state prison. The case has sent shockwaves through the LAUSD and raises serious concerns about corruption within the district. LA County District Attorney Nathan Hochman has promised to prosecute the case to the fullest extent of the law.
The scandal has led to the removal of LAUSD Superintendent Alberto M. Carvalho following an FBI raid last month. The investigation is ongoing, and more details are expected to emerge as the case unfolds. Stay tuned for updates on this developing story.
