Former LAUSD employee, tech company owner accused in $22 million money laundering scheme

A former Los Angeles Unified School District employee and a tech company owner have been charged in an alleged $22 million money laundering scheme, authorities said.

The Los Angeles County District Attorney’s Office said text messages between the two suspects show them planning to illegally transfer money away from the school district.

“We have announced charges in the largest money laundering operation in LAUSD’s history,” Los Angeles County District Attorney Nathan Hochman said.

Prosecutors have charged Hong “Grace” Peng of Pasadena and Guatham Sampath of Flower Mound, Texas, with money laundering.Peng is accused of diverting district contracts to Sampath, who allegedly funneled about $3 million back to her, authorities said.

According to Hochman, text messages show Sampath urging Peng to delete evidence of their communications.

“Mr. Sampath … texts Ms. Peng and says, ‘Delete all the WhatsApp chats that they have had,’” Hochman said. “If anybody sees these texts about these internal things, it will be a problem.”

In a statement, LAUSD said it is cooperating with investigators.

“LAUSD is committed to full compliance with all applicable laws, and we expect our employees and business partners to comply with the highest standards of ethics and integrity,” the district said. “The District will continue to cooperate fully with relevant authorities.”

United Teachers Los Angeles also responded, criticizing the district’s oversight.

“They won’t even agree to fully stock school restrooms with toilet paper, paper towels and soap,” said Julie Van Winkle, vice president of United Teachers Los Angeles. “And yet there always seems to be money for these contracts. As it’s coming out, it seems that there really hasn’t been a lot of oversight for these contracts.”

The allegations come after unrelated raids on the home and office of LAUSD Superintendent Alberto Carvalho, who was placed on administrative leave last month. Carvalho has denied any wrongdoing.

The alleged conduct involving Peng and Sampath only briefly overlaps with Carvalho’s tenure.

An arrest warrant has been issued for Peng, and an extradition warrant has been issued for Sampath. We were unable to reach either suspect for comment.