The Brief

The L.A. County District Attorney alleges a former Los Angeles Unified information technology employee illegally helped a tech company win more than $22 million in district contracts. Prosecutors say the case is “one of the largest money laundering schemes” in the district’s history.

According to the complaint, between 2018 and 2022 Hong “Grace” Peng worked in LAUSD’s IT department and participated in the approval and recommendation of over $22 million in payments to Innive Inc. for services primarily related to the district’s student data system. In the same time period, prosecutors allege Innive CEO Gautham Sampath paid Peng over $3 million.

“This is the type of evidence that you just shake your head, like you can’t believe it,” said District Attorney Nathan Hochman in a recorded statement about the case.

Hochman presented multiple text messages where Peng and Sampath discussed Innive’s contracts with the district. In one, Peng said Sampath was “lucky” she was on a selection committee. When he asked why, she responded "Because you have me...lol...I broke all law for you already lol."

Peng declined to comment when reached by LAist.

Michael Kraut, an attorney for Sampath, said his client had no knowledge of how the contract was awarded.

 "There's been no wrongdoing in terms of not producing, or theft of this money, or embezzling this money," Kraut said. "This is a case in which my client and his company produced exactly what they were contracted to do in the high tech field for LAUSD and the software."

Kraut said the $3 million was related to other "long-term contractual issues" with Peng and had "nothing to do" with the LAUSD contract.

"The DA's office is going to realize that they have made a mistake in this matter and jumped the gun and in fact, there is no criminal intent or actions by my client or his company," he said.

How did the alleged conduct come to light?

According to the complaint, the district first became aware of the alleged scheme in 2022, when an LAUSD IT employee attended a conference and learned from a former colleague of a possible connection between Peng and Sampath. The district employee alerted a supervisor, who alerted the district's inspector general.

A district spokesperson sent LAist a statement Thursday affirming that timeline and saying staff will continue to participate in the investigation “as appropriate.”

“We will not comment further on the specifics of the case while legal proceedings are ongoing,” the statement read.

What happens now?

Prosecutors charged Sampath with felony counts related to money laundering, “having a financial interest in a contract or purchase made in an official capacity” and “aiding and abetting a government official to have a financial interest in a contract or purchase” made in an official capacity. Peng faces two felony counts — one related to money laundering and the other with “having a financial interest in a contract or purchase made in an official capacity.”

The court issued warrants for Peng and Sampath’s arrests and bail was set at $500,000 for each.

Southern California was built on radio.

"I can still hear the jingle KFWB News 98,” wrote  Taline in Los Feliz, during a recent conversation on LAist's daily news show, AirTalk, which airs on 89.3 FM. “I grew up hearing that in my dad's minivan on the way to and from school. It has a special place in my heart.”

Back in April, broadcast company Audacy announced KNX News — one of the last-remaining all-news FM stations — was leaving the FM dial where it had simulcast on 97.1 FM since 2021. The station, which is also one of the oldest in L.A., is not budging from 1070 AM where it has been on the air for more than 100 years. The move away from FM officially happened in May to make way for a new sports talk station, which Audacy officials called an area of growth for advertisers in today’s media landscape.

The move is one in a long line of changes for radio and a reminder that before podcasts, playlists and algorithms, many Southern Californians built their days around radio broadcasts.

Radio, a daily ritual

The construction of KNX

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Herman J. Schultheis

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Los Angeles Public Library

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Michael Jackson, a well-known KNX, personality

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Los Angeles Public Library

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Larry Mantle, now in his 41st year hosting AirTalk, remembers being a kid and dreaming of what it might be like to be behind the mic at one of these radio stations.

“ I grew up with KNX," he said. “My dream job as a kid was to be an anchor on KNX or KFWB, the two local all-news radio stations, 'cause there was nothing like hosting AirTalk that even existed at that point.”

Mantle opened up the phone lines on a recent show to hear from his fellow SoCal radio lovers about the shows they miss and the memories they have. Here's what they had to say:

A love for radio, then and now  

A pilot of KMPC's traffic alert helicopter pictured with his daughter and grandson.

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Los Angeles Public Library

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A 1963 picture of Valley State College (now Los Angeles Valley College) preparing to launch KVCM

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Larry Leach

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Los Angeles Public Library

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“When you'd walk down Hollywood Boulevard where the station was, you could hear it playing as you went down the street,” said  Olivia in Glendale about KLAC 570 with Al Jarvis.

 Larry in Yorba Linda shouted out KBCA Jazz for its 24-hour jazz, saying “When I first moved out here in '68 from Phoenix, which had like an hour a week, it was a real wonder.”

 Mark in Glassell Park emailed that he loves KCRW’s Henry Rollins, writing, “I used to bristle at his unique DJ persona, but over time, I came to love him and his crazy eclectic playlists. I find his knowledge in history and punk rock fascinating. He's a gem and a legend."

"I'd like to give a shout-out to all the DJs working at KXLU, the college station at Loyola Marymount University, said  Jeremy in Culver City in an email. “That station's been on the air for nearly 60 years. I believe it's one of the best examples of what's possible with radio."

"KFWB and KRLA back in the day when they were rock music stations —  Dr. Demento, one of my favorite on-air personalities, also had eclectic music taste," said  Carrie in Desert Edge.

“ Dr. Demento was must listening when I was a kid in junior high school at Le Conte Junior High in Hollywood,” Mantle added. “Every Sunday night on KMET, we would make sure we were listening to Dr. Demento and his funny records.”

The question remains…

An 11-year-old winning a car in a KMPC contest in 1963.

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Los Angeles Public Library

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Listener support is vital to any radio station, and it’s clear KNX has many lifelong fans. AirTalk listeners highlighted their support for household KNX names over the decades like Bill Keene, Melinda Lee, Mike Roy and Jackie Olden.

As KNX makes changes, many are watching closely and thinking about the future of radio.

Listeners like Tommy in La Quinta are left wondering if the radio dial will be the same…

“I’m a hardcore listener, but I don't know about casual listeners [and] if they'll tune to AM,” he said.

After months of hand-wringing, Los Angeles and LA28 have come to a tentative agreement on how Olympics organizers will reimburse the city for its expenses for the 2028 Summer Games.

According to the deal, the private Olympic organizing committee will pay upfront for the estimated cost of services that are not eligible for federal reimbursement, like trash pick-up and traffic control. Under another proposal, the city would also be able to tap an LA28 contingency fund if it isn't fully repaid by the federal government for policing costs at Olympic venues.

The agreement is nearly nine months overdue and still needs approval by Mayor Karen Bass and the City Council.

The 2028 Olympics are intended to be privately financed, and an existing city agreement with LA28 states that the Olympics organizers, not L.A., will pay for extra costs for public services in support of the Games. But L.A. is the financial back-stop for the Olympics, meaning if LA28 goes in the red, taxpayers will pick up the bill.

Beyond that, the city services agreement presents another area where L.A. could incur additional unexpected expenses for hosting the Games. L.A. City Councilmember Monica Rodriguez warned LA28 CEO Reynold Hoover earlier this year that a bad deal could "bankrupt" the city.

Jacie Prieto Lopez, an LA28 spokesperson, and Paul Krekorian, who leads the city's office of major events, said in statements that the freshly inked agreement would help deliver a fiscally responsible Games.

"Mayor Bass’ priority is that the 2028 Olympic and Paralympic Games be fiscally responsible, protect taxpayers, and benefit Angelenos for decades to come. This agreement helps deliver that commitment," Krekorian said.

But the contract between the two parties doesn't fully resolve one of the biggest areas of financial risk for the city: the enormous cost of security for an event as extensive and high-profile as the summer Olympics and Paralympics.

Organizers are counting on the federal government to pay for public safety at Olympic venues that are considered part of a "national special security event." That includes costs for LAPD staffing. LA28 has not included security costs in its $7.1 billion budget — a fact that City Attorney Hydee Feldstein Soto criticized earlier this year.

The federal government has so far allocated $1 billion for security costs for the Olympics. Exactly where those federal funds will go has not yet been determined, and there's no guarantee they will cover all of L.A.'s policing costs.

To address this, city officials have also proposed an amendment to a 2021 agreement between the city and LA28. That amendment would establish that if L.A. is not reimbursed by the federal government for all its eligible expenses, it could dip into LA28's contingency fund of $270 million before the private organizing committee could use those funds for any legacy projects.

But that bucket of money will first be used for any costs that Olympics organizers still owe if they run out of revenue — meaning if the Olympics don't turn a profit, the city's access to that money will depend on how much is left for the taking.

Civil rights attorney Connie Rice, who has been tracking the city's negotiations with LA28, told LAist the agreement was a "PR document" not a deal. She pointed out that if the federal government does not pay up for security spending as expected, L.A. could be in trouble.

" It leaves the taxpayers with a GoFundMe strategy," she said.

The city services agreement lays the groundwork for more negotiations between LA28 and the city. Each venue will require its own agreement, to be negotiated by July 1, 2027. Venues in the city of L.A. include Dodger Stadium, the L.A. Convention Center, L.A. Memorial Coliseum and the Venice Beach Boardwalk.

The City Council's ad-hoc committee on the 2028 Games will meet Tuesday afternoon to vote on the agreement.