The Los Angeles School District IT employee accused of siphoning millions from the district and getting huge kickbacks in return sent incriminating text messages that could put her behind bars for years.
A text chain between LAUSD staffer Hong “Grace” Peng and Gautham Sampath obtained by the California Post reveals damning evidence, according to prosecutors.
Sampath, who is CEO of Texas technology company Innive, texts Peng asking, “What r the other opportunities in LAUSD. That we can exploit,” to which she responds, “Yea, a lot of them.”
LA County District Attorney Nathan Hochman says Peng conspired with Sampath in a pay-to-play scheme where Peng fed more than $22 million in contracts to a company owned by Sampath from 2018–2022.
Sampath then routed and laundered more than $3 million in kickbacks back to Peng through various intermediaries, Hochman alleges.
According to the criminal complaint, Innive received over $39 million in payments from LAUSD between 2017 and 2023.
The text messages appear to show Sampath and Peng knew what they were doing was wrong. “Delete all watsup chats… if anyone sees the text about these internal things it will be a prb,” Sampath wrote on Feb. 18, 2018.
Later that year, Peng texts Sampath, “Let’s grab these money first.. Its already in the pocket. Low hanging fruits… let’s get these money… It’ll be good for us.”
The complaint shows several payments to various companies all owned by Sampath. At one point the duo discusses setting up the additional entities.
“We need to come up with lot of companies,” Sampath says, “at least 3-4 to take out the money… Close to million will be transferred to you… Easy to track unless we are very careful,” he continues.
Peng responds, “Should we start another company under a different name?… I can setup a company in HK… China… or Singapore.”
Another text in June 2018 revealed alleged billing practices, with Peng texting Sampath: “I have a way to get those money. Can load them up more work, then charge more hours.”
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Peng is charged with two felonies — money laundering and having a financial interest in a contract or purchase made in an official capacity.
Sampath is charged with four felonies — 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 a contract.
When Hochman originally announced the charges, he revealed another damning email from Peng to Sampath: “Youre’ so lucky Im on the selection committee.”
Sampath responds, “Why did you say Innvie is lucky?” “Because you have me… I broke all law for you already lol,” Peng wrote back.
The complaint also reveals that Peng signed a contract integrity certification that asked if she had received or had been promised any royalties, gifts, or gratuities from anyone that has contracted with LAUSD, to which Peng responded “No.”
If convinced both Peng and Sampath face seven years in state prison.
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