Disgraced LAUSD employee Grace Peng emotionless in court

A former employee of the Los Angeles Unified School District (LAUSD) faced a downtown court on Friday, charged with involvement in a significant money laundering operation.

Hong “Grace” Peng, 53, previously a technical project manager for LAUSD, entered a plea of not guilty to accusations of participating in a staggering $22 million kickback scheme.

This case unfolds amidst existing accusations of fraud surrounding LAUSD Superintendent Alberto Carvalho, adding to the district’s ongoing controversies.


Hong Grace Peng in Los Angeles Superior Court.
Disgraced Hong “Grace” Peng, 53, — who worked as a technical project manager for LAUSD — pled not guilty Frederick M. Brown for California Post

Peng, a resident of Pasadena, appeared in court wearing a blue pin-striped jacket and collared shirt, her dark hair neatly tied back. She stood before Judge Theresa McGonigle in Department 30, following the issuance of a $500,000 warrant mandating her presence.

During the proceedings, Deputy District Attorney Casey Higgins from the Public Integrity Division disclosed that 24,000 pages of evidence would be handed over to Peng’s defense team.

Represented by private attorney Rayn Gravelly, Peng remained composed, her head slightly bowed, throughout the 10-minute session. She spoke only once, affirming her understanding of the proceedings with a single “yes” when questioned by the judge.

She was released on her own recognizance, and declined to speak to The California Post. 


Hong Grace Peng in Los Angeles Superior Court for fraud.
Peng, of Pasadena, was dressed in a blue pin-striped jacked, blue collared shirt and with her dark hair tied back in a ponytail. Frederick M. Brown for California Post

Peng was required to surrender all passports and wear an ankle monitor with GPS tracking. She is forbidden from leaving the U.S. and will require permission from the court to leave California. 

She was ordered to attend a local police station to be booked, photographed and finger-printed. 

A preliminary setting hearing is scheduled for June 10. 

Attorney Higgins told The Post after the hearing that the number of pages of evidence will exceed the 24,000 number he mentioned in court.


Download The California Post App, follow us on social, and subscribe to our newsletters

California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
California Post Sports Facebook, Instagram, TikTok, YouTube, X
California Post Opinion
California Post Newsletters: Sign up here!
California Post App: Download here!
Home delivery: Sign up here!
Page Six Hollywood: Sign up here!


Peng faces two felony charges — money laundering and having a financial interest in an official contract— for her alleged role in the scheme. The allegations date back to 2018.

L.A. County Dist. Atty. Nathan Hochman called the racket the largest kickback scheme ever in the nation’s second-largest school system.

“This case involves a blatant abuse of public trust — funneling taxpayer dollars intended for students into personal coffers,” Hochman said in a statement on March 26.

The “multi-year, multi-contract pay-to-play arrangement … siphoned millions of dollars from our schools.”

An arrest warrant was issued for Peng on March 19.

Peng’s co-accused, Gautham Sampath of Flower Mound, Texas, was a senior executive at Innive, the company that received the LAUSD contracts.

Their alleged scheme was exposed in 2022, after one of the involved parties bragged about it at a professional conference and was overheard by another LAUSD employee who reported the comments to district officials, the official complaint.

Sampath is expected to be arraigned on April 17.

You May Also Like
Donna Brazile refuses to discuss Jill Biden's stroke admission from 2024 debate

Donna Brazile Remains Silent on Jill Biden’s Health Revelation During 2024 Debate

Donna Brazile, who once led the Democratic National Committee as acting chair,…
White House says Trump is in

Trump Set to Open Great American State Fair Amidst Musician Withdrawals

In a surprising turn of events, former President Donald Trump is set…
Californians disapprove of Governor Gavin Newsom in latest poll

New Poll Reveals Growing Discontent with Governor Gavin Newsom Among Californians

Governor Gavin Newsom’s performance has sparked a division among primary voters, as…
Mayhem breaks out between anti-ICE protesters, police at Newark's Delaney Hall

Clashes Erupt Between Anti-ICE Demonstrators and Police at Newark’s Delaney Hall

Chaos erupted Saturday night during ongoing protests against ICE at Newark’s Delaney…
NYPD investigating after surveillance video captures group entering sewers through manholes

NYPD Probes Mysterious Group Seen Entering Sewers Through Manholes in Surveillance Video

Authorities in New York City are delving into a peculiar case involving…
Capitol rioters clamor for payouts from Trump's new 'anti-weaponization' fund despite backlash

Capitol Rioters Seek Compensation from Trump’s ‘Anti-Weaponization’ Fund Amid Controversy

David Johnston, a former lawyer, took part in the Capitol riot with…
Search underway for 4 Alabama inmates who escaped correctional center

Intense Manhunt Launched for Four Escaped Alabama Inmates

Authorities in central Alabama are actively searching for four inmates who made…
Manhunt underway for suspect in Virginia accused of killing sheriff's deputy

Virginia Authorities Launch Manhunt for Suspect in Fatal Shooting of Sheriff’s Deputy

Authorities in Virginia have launched a manhunt for a suspect believed to…
The 667-pound clue CIA missed in David Rush's gold bar scandal

How the CIA Overlooked a 667-Pound Gold Bar in David Rush’s Controversial Case

The CIA should have been alerted the moment former officer David Rush…
Arizona school board member Kim Fisher gives Nazi salute shouts heil at boad president Paul Carver

Arizona School Board Member Sparks Outrage with Controversial Gesture and Remark at Meeting

In Arizona, a school board member has sparked outrage after performing a…
Woman stabbed to death on Atlanta MARTA train in 'senseless' attack, suspect arrested

Tragic Incident on Atlanta MARTA Train: Woman Fatally Stabbed in ‘Senseless’ Attack; Suspect Apprehended

In a tragic incident that unfolded in broad daylight on Saturday afternoon,…
Women found stabbed death same building prior murder suicide

Woman Discovered Fatally Stabbed in Building with Prior Murder-Suicide Incident

On Saturday night, authorities discovered the bodies of two women who had…