A woman accused of fraud in the Los Angeles Unified School District made her court appearance on Friday, facing serious allegations linked to a large money laundering operation.
Hong “Grace” Peng, a 53-year-old who served as a technology project manager for LAUSD, has pleaded not guilty to accusations of being involved in a staggering $22 million kickback scheme.
This incident unfolds amid ongoing turmoil for the school district, which is also dealing with fraud allegations against its Superintendent, Alberto Carvalho.
Peng, who resides in Pasadena, appeared before Judge Theresa McGonigle dressed in a blue pinstriped jacket and a collared shirt, her black hair tied back in a ponytail. During the court session, Assistant District Attorney Casey Higgins from the Public Integrity Division mentioned that Peng’s defense would present an extensive 24,000 pages of evidence.
Throughout the brief 10-minute hearing, Peng, represented by attorney Lane Gravely, kept her head down and showed little emotion, responding with a simple “yes” when asked by the judge if she understood the proceedings.
She was released on her own recognizance but opted not to provide any comments to the press afterward.
Peng has been instructed to surrender her passports and wear a GPS ankle monitor. She is not permitted to leave the United States without the court’s permission, and has to report to a local police station for booking, photos, and fingerprints.
A preliminary hearing is set for June 10, and it seems the evidence against her may well exceed the initial estimates provided in court.
Peng is facing two felony charges related to money laundering, involving contracts that date back to 2018. Los Angeles Township Attorney Nathan Hockman described the alleged operation as the most significant kickback scheme in the nation’s second-largest school district.
“This case represents a flagrant violation of public trust, diverting funds meant for students into private hands,” Hockman stated. “These schemes have cost millions that should have benefited our schools.”
Peng’s co-defendant, Gautam Sampath from Texas, has been identified as a senior executive at the company that won the LAUSD contract and is scheduled to be arraigned soon.
The alleged scheme was exposed in 2022 when a conversation at a professional meeting caught the attention of another LAUSD employee, leading to an investigation.
