A former New York State government employee, Linda Sun, and her husband Chris Hu face additional charges in what prosecutors claim is a kickback scheme involving the procurement of personal protective equipment (PPE) during the early stages of the COVID-19 pandemic. According to the U.S. Attorney's Office for the Eastern District of New York, the couple allegedly used Sun's position to steer contracts towards vendors with hidden personal ties, enriching themselves in the process.
The charges, announced yesterday, add to an already complex case against the duo. As per the second superseding indictment, Linda Sun leveraged her influence to facilitate the New York State government's purchase of PPE from certain vendors in the People's Republic of China—some of which were disguised referrals from components of the Chinese government. The indictment also claims that undisclosed companies connected to Hu and Sun received lucrative contracts worth millions of dollars each. In one instance, a vendor known as the "Cousin Company," reportedly operated by one of Sun’s second cousins, was pushed to the fore after Sun manipulated an official document to mislead procurement authorities, as reported by the U.S. Attorney's Office.
Emails and spreadsheets recovered from the couple’s personal computers indicate that the arrangements were deliberately organized. According to an indictment filed by the Eastern District of New York, Linda Sun is accused of acting as an unregistered agent of the government of the People’s Republic of China and profiting by millions during the early stages of the COVID-19 pandemic in New York State. U.S. Attorney Joseph Nocella, Jr., FBI New York Assistant Director in Charge Christopher G. Raia, and IRS-CI New York Special Agent in Charge Harry T. Chavis, Jr. emphasized the seriousness of the charges, particularly during a time of public health crisis.
In addition, Hu is also charged with tax evasion for allegedly failing to report income from kickback payments. The indictment details a cover-up that included placing financial accounts under a relative’s name and concealing approximately $2.3 million in taxable income. According to the charges, Sun is accused of using funds from China and her position in New York State to benefit the Chinese government, as well as directing multi-million-dollar contracts to companies linked to family members and associates. The investigation involved several agencies, including the Department of Justice’s National Security Division and the New York State Office of the Inspector General.
Linda Sun and Chris Hu are set to be arraigned on June 30. In the American judicial system, the defendants are presumed innocent until proven guilty. The case is presently in the hands of the Office’s National Security and Cybercrime Section, with Assistant United States Attorneys Alexander A. Solomon, Robert M. Pollack, and Amanda Shami leading the prosecution.
