Former New York State Deputy Chief of Staff Linda Sun and her husband Chris Hu were charged with multiple crimes including acting as foreign agents, receiving kickbacks, and money laundering, as their case entered its eighth day of trial yesterday. The court proceedings of the day focused on two main aspects: the significant discrepancies between the actual income and assets of Sun and Hu compared to their official declarations, and Sun’s financial disclosures and adherence to New York State public officials’ ethics regulations.
Accountant Adam Baruch, who had been filing taxes for the Sun couple for over a decade, testified that the couple filed their taxes jointly. When he inquired whether Hu held any foreign accounts or received income from the state government, Hu answered “no” to both questions. Hu also did not disclose earnings from PPE suppliers like High Hope and JCD.
Court documents revealed that despite Sun and Hu consistently claiming “almost no income” or significant losses in their tax filings over the years – including the couple showing a negative income of $665,000 in 2020, $3,900 in 2021, and Hu’s company incurring losses of over $1.5 million in these two years – the couple made high-value property purchases in 2021 with full one-time payments, including a Long Island mansion worth approximately $4.05 million and a Hawaii ocean-view condo currently valued at around $2.1 million.
Analyst Andrea Robbins from the New York State Public Ethics Enforcement Commission testified that based on Sun’s financial disclosure, Hu’s seafood business earned between $75,000 to $150,000 annually. However, the report did not include the Sun couple’s properties in Hawaii and Forest Hills, Queens, with only 5% ownership of a property valued between $250,000 to $500,000 in Jamaica, New York, that Hu owns.
Prosecutors pointed out that these acquisitions occurred after Hu received several wire transfers from accounts in China opened in the names of his business partners.
Robbins explained to the jury that according to regulations, Sun became a mandatory filer of financial disclosure reports annually since becoming Deputy Chief of Multicultural Affairs under former Governor Cuomo in February 2018, and was required to complete state-mandated “comprehensive ethics training.” Records show that she underwent the training more than once.
Robbins detailed that the comprehensive ethics course explicitly stated that Sun should not accept gifts from “conflicted sources,” which include money, travel, meals, services, discounts, etc., that could reasonably be seen as influencing official actions, which would constitute illegal behavior. Sun was also required to disclose positions held in any commercial or non-profit organizations, gifts or compensations received, and real estate and investments owned individually or jointly.
She was also subject to restrictions under the New York State Public Officers Law, prohibiting her from using her position for personal gain, engaging in transactions with entities in which she has a financial interest, misappropriating state resources, and accepting gifts that may affect public duty performance.
In conclusion, signature expert John Osborn from Osborne & Associates testified in court that some of Hu’s checks had questionable signatures, potentially involving forgery. The trial also revealed that prosecutors are questioning the Sun-Hu accountant regarding tax issues relating to New York State’s 2020 unemployment funds, with further details expected to be clarified in subsequent trial sessions.
Due to the Thanksgiving holiday, the case will resume next Monday, where more crucial details are expected to be disclosed.