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
Marlow: Starmer Ouster Paves Way for Prime Minister Farage -- But It Won't Be an Easy Path

Marlow: Starmer’s Downfall Could Clear a Rocky Road to Prime Minister Nigel Farage

On Monday’s edition of “The Alex Marlow Show,” Editor-in-Chief Alex Marlow turned…
Video shows Reno drag race crash involving $200K Porsche supercar

Reno Drag Race Crash Caught on Video as $200K Porsche Supercar Wrecks

A suspected late-night street race involving a high-priced Porsche supercar ended in…
Rock legend Billy Idol and guitarist Steve Stevens are inducted to the Hollywood's Rockwalk

Billy Idol and Steve Stevens Inducted into Hollywood’s RockWalk

HOLLYWOOD — Billy Idol is having a milestone year. The rock icon…
Mamdani stumps for far-left House hopefuls as NY primary voters hit the polls

Mamdani Rallies for Far-Left House Candidates as New York Primary Voters Cast Ballots

Mayor Zohran Mamdani spent Tuesday morning crisscrossing New York City to rally…
Beloved Queens White Castle closes after 85 years

Iconic Queens White Castle Closes After 85 Years, Ending a Fast-Food Era

A White Castle restaurant that has served generations of customers in Queens…
The rise of 'gray divorce,' and why so many Boomers are splitting up late in life

Why More Baby Boomers Are Choosing Divorce Later in Life

Divorce is increasingly becoming a later-in-life decision for Americans 50 and older,…
Ex-Oklahoma inmate who was nearly executed 3 times has new murder trial set a month after being released

Oklahoma Man Nearly Executed Three Times Faces New Murder Trial After Release

A fresh murder trial is set to begin in September for Richard…
Republicans support Trump's Iran deal — until they find out what's actually in it, poll shows

Poll Shows Republican Support for Trump’s Iran Deal Falls After Details Emerge

WASHINGTON — Republican voters appear to sour on a preliminary peace agreement…
Brea police issue warning after spying device found in neighborhood bushes

Brea Police Warn Residents After Hidden Spying Device Found in Neighborhood Bushes

A hidden surveillance camera found tucked inside neighborhood bushes has raised concerns…
FBI, NYPD conduct searches across New York City in corruption investigation of police executives

FBI and NYPD Search NYC Sites in Expanding Police Executive Corruption Probe

NEW YORK — Federal agents and NYPD investigators carried out searches Wednesday…
Stephen A. Smith questions why activists are still defending Karmelo Anthony after guilty verdict

Stephen A. Smith Challenges Activists Still Supporting Karmelo Anthony After Guilty Verdict

Attorneys join Karmelo Anthony’s appeal pro bono following murder conviction Project 21…
NY-13: Mamdani-Backed Chevalier Wins Primary, but Check Out Who Likely Put Her Over the Top

Mamdani-Backed Chevalier Wins NY-13 Primary With Likely GOP Crossover Support

Progressive candidates endorsed by New York City Mayor Zohran Mamdani scored a…