An IT employee from the Los Angeles School District is facing serious accusations of embezzling millions from the district, apparently in exchange for significant kickbacks. Text messages that have come to light may lead to substantial prison time for him.
State prosecutors point to a text conversation between LAUSD staff members Hong “Grace” Penn and Gautam Sampath as evidence of wrongdoing. The discussions reveal questionable intentions, with Sampath, who heads a Texas tech firm called Innive, asking Penn about potential advantages the district could provide. Penn replied, indicating there were indeed numerous opportunities.
Los Angeles County District Attorney Nathan Hockman stated that the pair allegedly took part in a pay-to-play arrangement, resulting in over $22 million in contracts awarded to Sampath’s companies from 2018 to 2022.
Furthermore, Hockman claims that Sampath funneled more than $3 million back to Penn through several intermediaries to disguise the transactions.
The criminal complaint outlines that Innive received upwards of $39 million from LAUSD between 2017 and 2023, suggesting both individuals were aware their actions were illicit. For instance, on February 18, 2018, Sampath advised Penn to erase their WhatsApp chats, noting that any visibility of their discussions could lead to serious issues.
Later that year, Penn urged Sampath, “Let’s get this money. It’s already in our pockets. It’s low-hanging fruit… Let’s capitalize on this. It could be beneficial for us.”
The complaint hints at multiple payments made to various companies owned by Sampath. They even appeared to strategize about establishing further companies to facilitate transactions. Sampath mentioned to Penn that he should create several entities to withdraw the funds, suggesting that it would be simpler to trace if they weren’t careful.
In another exchange from June 2018, Penn hinted at his knowledge of questionable billing practices, instructing Sampath to take on more work to justify billing for more hours to get the money.
Penn now faces charges of money laundering and having a financial stake in contracts executed while on duty. Sampath is facing four counts, including money laundering and aiding and abetting a government official with a financial interest in a contract.
Hockman also highlighted another troubling email from Penn to Sampath, where Penn expressed feeling fortunate to be on a selection committee, to which Sampath jokingly remarked about breaking laws for him.
The complaint further details that Penn was asked if he had received any gifts or incentives from individuals who contracted with LAUSD, to which he answered “no.” If found guilty, both could face seven years in state prison.
