LOS ANGELES — The Los Angeles Unified School District filed a civil lawsuit Friday seeking damages and other relief related to an alleged conflict-of-interest and fraud scheme involving a former District employee and an information technology contractor.
The complaint, filed in Los Angeles County Superior Court, alleges that Defendant Hong “Grace” Peng, a former Los Angeles Unified Information Technology Services manager violated state conflict-of-interest laws by secretly maintaining a financial and personal relationship with a contractor, Defendant Innive, Inc., and its CEO Defendant Gautham Sampath, while participating in contracting decisions that benefited that company. The lawsuit further alleges that the contractor and its leadership knowingly aided and benefited from this misconduct.
According to the filing, the former employee participated in procurements, evaluations, and approvals tied to millions of dollars in District contracts, work orders, and change orders, while concealing financial ties and receiving payments connected to the contractor’s business with the District through various intermediaries. The complaint also alleges that the contractor failed to disclose these conflicts despite clear contractual obligations and ethical requirements.
“Los Angeles Unified 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,” Acting Superintendent Andrés E. Chait said. “When those standards are violated, we will take decisive action to hold responsible parties accountable and to recover taxpayer dollars.”