Linda Sun, 41, who held numerous posts in New York state government, including deputy chief of staff for Gov. Kathy Hochul and deputy diversity officer for former Gov. Andrew Cuomo, was arrested Tuesday morning along with her 40-year-old husband, Chris Hu, at their $4 million home on Long Island.
The FBI had searched the couple's Manhasset home in July, but declined to release further details at the time.
Sun and Hu pleaded not guilty in federal court on Tuesday afternoon.
The charges are related to violations of the Foreign Agents Registration Act and officials say Sun is charged with acting as an undisclosed agent of the People's Republic of China and the Chinese Communist Party.
"As alleged, while appearing to serve the people of New York as Deputy Chief of Staff within the New York State Executive Chamber, the defendant and her husband actually worked to further the interests of the Chinese government and the CCP," stated United States Attorney Breon Peace. "The illicit scheme enriched the defendant's family to the tune of millions of dollars."
Prosecutors said Sun, at the request of Chinese officials, blocked representatives of the Taiwanese government from having access to high-level officials in New York state, altered state governmental messaging on issues related to the Chinese government and attempted to facilitate a trip to China for a high-level politician in New York, among other things.
In return, her husband got help for his business activities in China - a financial boost that prosecutors said allowed the couple to buy their multimillion-dollar property in Manhasset, New York, a condominium in Hawaii for $1.9 million, and luxury cars including a 2024 Ferrari, the indictment says.
Hu is charged with money laundering conspiracy, conspiracy to commit bank fraud and misuse of means of identification.
If true, the allegations show that Chinese authorities were able to gain influence at the highest levels of state government in New York for nearly a decade.
Sun worked in state government for about 15 years before she was fired last year from her job as deputy commissioner for strategic business development at the New York State Department of Labor.
She previously served as Hochul's deputy chief of staff. A press secretary for the governor released the following statement:
"This individual was hired by the Executive Chamber more than a decade ago. We terminated her employment in March 2023 after discovering evidence of misconduct, immediately reported her actions to law enforcement and have assisted law enforcement throughout this process."
A spokesman for Cuomo said Sun "had little to no interaction with the governor."
"National security is critical and must be free from foreign influence," Cuomo's rep Rich Azzopardi said. "While Ms Sun was promoted to Deputy Chief of Staff in the subsequent administration, during our time she worked in a handful of agencies and was one of many community liaisons who had little to no interaction with the governor."
Sun will be released on $1.5 million bond and Hu will be released on $500,000 bond and travel for both will be limited to NYC, Long Island, Maine and New Hampshire.
Sun and Hu live in a gated community on Long Island called Stone Hill. The couple purchased the house in 2021 but placed it in a trust earlier this year, records show.
ABC News' Aaron Katersky breaks down the case on Eyewitness News Mornings @ 10:
Former aide to Gov. Hochul, Cuomo accused of spying for China for millions in kickbacks
(The Associated Press contributed to this report.)
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