In part, Hu laundered the income from the Cousin Company by having the Cousin make $1.5M in payments in three $500,000 increments from another entity that the Cousin owned (the Cousin Entity) to US accounts at a financial institution. Hu created these accounts in a close relative’s name instead of his own on Apr 29, 2020, two days before the final $6M payment from NYS government to the Cousin Company.
Sun also arranged for the Associate Company to be a vendor for NYS government contracts. On Mar 14, 2020, Sun wrote an email with the subject “Mask suppliers” to other members of the NYS government PPE task force with procurement authority and listed the Associate Company as a potential supplier. Sun subsequently communicated with the Associate Company by email to obtain a price quote for the contract and provided a status update to the NYS government about the contracts with the Associate Company.
A computer owned by the defendants contained a NYS internal document tracking various state PPE contracts, broken out by vendor. One of the fields in the document contained, for each company, an answer to the question “why did we do business with this vendor?” For the Associate Company, the answer to the question was listed as: “referred by Chinese chamber of commerce.” However, there was no such referral for the Associate Company.
According to a spreadsheet found in one of Hu’s electronic accounts, the total profits Hu expected to reap from the contracts that the Associate Company and the Cousin Company had with the NYS Department of Health totaled $8,029,741. Hu marked the column for these expected profits with the word “me”.
The new charges are in addition to the existing charges against Sun, which include violating and conspiring to violate the Foreign Agents Registration Act, visa fraud, alien smuggling, and money laundering, and the existing charges against Hu, which include money laundering conspiracy, money laundering, as well as conspiracy to commit bank fraud and misuse of means of identification.
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