A Texas tech executive accused ofhelping funnel millions out of the Los Angeles Unified School Districtpleaded not guilty Friday, as prosecutors push forward in what they describe as one of the biggest alleged corruption schemes in district history.
Gautham Sampath, 53, appeared in a downtown Los Angeles courtroom where he was arraigned on felony charges includingmoney laundering and conflict-of-interest violationstied to public contracts, according to the Los Angeles County District Attorney’s Office.
Before Judge Teresa McGonigle, Sampath entered a not guilty plea. He was released on his own recognizance under strict conditions: surrendering his passport, remaining in the United States and complying with all laws.
The case now moves to June 10, when it will be determined whether there is enough evidence to push the case toward trial.
At the center of the scandal is Sampath’s alleged partnership with former LAUSD IT project manager Hong “Grace” Peng, 53, of Pasadena.
Peng has already pleaded not guilty to similar felony charges, including money laundering and having a financial interest in contracts she oversaw.
Prosecutors say the two orchestrated a multi-year“pay-to-play”operation tied to LAUSD’s MiSiS student information system, steering lucrative work to Sampath’s company, Innive.
Between 2018 and 2022, Peng allegedly helped direct more than $22 million in contracts to the firm while secretly benefiting from the arrangement.In return, Sampath is accused of routing more than $3 million back to Peng through a web of intermediaries designed to conceal the payments.
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District Attorney Nathan Hochman blasted the alleged scheme as a“blatant abuse of public trust,”accusing the pair of diverting taxpayer dollars meant for students into their own pockets.
Source: California Post – Breaking California News, Photos & Videos
