The Los Angeles Unified School District (LAUSD) is investigating an alleged $22 million theft by a former employee, which officials describe as the largest fraud in the district's history. The scheme, uncovered in early 2026, involved a senior IT manager who allegedly created fake vendors and submitted fraudulent invoices over several years.
According to LAUSD Superintendent Alberto Carvalho, the district detected the fraud through an internal audit and immediately reported it to law enforcement. The former employee, whose name has not been released, was arrested in April 2026 and faces charges of grand theft, embezzlement, and money laundering.
The funds were allegedly diverted from technology budgets meant for student devices and infrastructure. LAUSD has since implemented new financial controls, including enhanced vendor verification and dual approval for large payments, to prevent future incidents. The investigation is ongoing, and the district is working to recover the stolen funds through asset forfeiture.
