New Federal Charges for Former Aide Linked to COVID-19 Fraud
Governor Kathy Hochul’s former aide, Linda Sun, is reportedly facing serious new federal charges, as revealed on Wednesday. Allegations suggest she and her husband, Chris Hu, orchestrated an $8 million fraud scheme involving contracts between New York State and two vendors from China that supplied pandemic-related equipment.
Prosecutors claim that one of the companies was managed by Hu and his partners, while the other was linked to Sun’s second cousin. It’s interesting to note that the personal connections were not disclosed to staff, raising some eyebrows around transparency.
Sun, 41, allegedly informed her doctors that the two companies were recommended by officials in China. Meanwhile, her husband is accused of tracking expected profits in a document whimsically titled “I.”
According to Joseph Nosera, an attorney with the U.S. attorney’s office for the Eastern District of New York, the couple exploited a national crisis when “the nation was most vulnerable at the start of the COVID-19 pandemic.” He emphasized that in a time when protective gear was scarce, Sun abused her trusted position for personal gain.
Sun’s legal team has pushed back against the charges, insisting their client “vehemently denies” any wrongdoing. Attorney Jarrod L. Schaefer remarked that the latest accusations suggest a trend of “enthusiastic” claims made without sufficient evidence to stand up in court.
When the pandemic first hit New York, Sun was part of a critical team working to secure personal protective equipment. Her role involved liaising with the Chinese government for these necessary supplies, which, in hindsight, appears to have blurred some ethical lines.
In a notable incident, the Jiangsu Province Commerce Department had initially recommended four vendors to state officials. Yet, prosecutors argue that Sun altered these documents, replacing one vendor with her cousin’s company. She’s also accused of modifying emails to suggest that her cousin’s surgical masks were the “gold standard.”
Reports indicate that her cousin’s company allegedly funneled $2.3 million in kickbacks to the couple from 2020 to 2021. Additionally, the spreadsheet maintained by Hu suggested that both companies could potentially yield $802 million in profits, raising suspicions about their business dealings.
This alleged scheme not only enriched the couple, but it also diverted crucial state resources during a public health crisis, according to an FBI assistant director.
Both Sun and Hu were initially arrested in September and charged with acting as foreign agents while allegedly courting Chinese interests for personal gains, including substantial bribes. Hu is also facing accusations of money laundering after supposedly opening bank accounts in the names of his relatives for his benefit.
New charges against the couple now encompass honest services wire fraud, conspiracy, and bribery, alongside allegations of defrauding the U.S. related to COVID funds and tax evasion for failing to report ill-gotten income.
Hochul’s office previously indicated that Sun ceased her role earlier in 2023 when fraud allegations first emerged.
Further hearings for both Sun and Hu are set for Monday, although Hu’s legal representatives haven’t yet responded to comments on these developments.
