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The Star
2 days ago
- Business
- The Star
Ex-New York official facing China agent charge indicted for kickbacks
A former top New York official earlier charged with acting as a Chinese agent was handed a second federal indictment alleging she received kickbacks for steering some US$35 million worth of healthcare contracts to favoured suppliers during the coronavirus pandemic, federal prosecutors said on Thursday. The new charges against Linda Sun, 41 – once an aide to New York governors Kathy Hochul and Andrew Cuomo – and against her husband and co-defendant, Chris Hu, 40, included wire fraud, bribery, tax evasion and conspiracy to defraud the US. 'As alleged, Linda Sun not only acted as [an] unregistered agent of the government of the People's Republic of China but also enriched herself to the tune of millions of dollars when New York state was at its most vulnerable' during the start of the pandemic, US attorney Joseph Nocella with the Eastern District of New York said in a statement. 'When masks, gloves and other protective supplies were hard to find, Sun abused her position of trust to steer contracts to her associates so that she and her husband could share in the profits,' he added. Details of the superseding indictment were released on Thursday after the additional charges were handed down on Wednesday. As outlined in court documents, in early 2020, Sun and a team of state employees drew on her connections in Beijing to obtain highly sought-after protective gear. But Sun also allegedly claimed falsely that China had recommended two additional vendors, one operated by her second cousin and another operated by her husband and his business associates. Sun reportedly failed to disclose the alleged dealings, which involved routing government contracts worth millions of dollars to each of the two companies, as required in her capacity as a state official. The couple reportedly siphoned off US$2.3 million in kickbacks in 2020 and 2021. 'This husband-and-wife team with supposed ties to corruption has been rooted out,' Harry Chavis, a special investigator with the Internal Revenue Service, said in a statement. 'In legitimate government spending, there is no friends-and-family discount.' The indictment also alleges Sun falsified records to convince New York authorities that Jiangsu province's commerce department had recommended her cousin's company for its 'gold standard' masks and that the 'Chinese chamber of commerce' recommended the second firm operated by her husband and associates for its products. The indictment claims that Sun and Hu failed to declare the US$2.3 million payments to tax authorities and 'laundered the income' by routing three US$500,000 payments to American accounts set up by Hu in the name of a close relative. According to a spreadsheet reportedly found in one of Hu's electronic accounts, the total profits from the two companies that Hu expected to realise totalled US$8,029,741. This week's indictment follows earlier charges of visa fraud, alien smuggling and money laundering against Sun filed last September tied to her allegedly working as an unregistered agent of China during her tenure in state government. Sun and Hu pleaded not guilty to the earlier charges following their arrest last September and were released on US$1.5 million and US$500,000 bonds, respectively. The Chinese embassy in Washington declined to comment on the specifics of the case but pushed back on Sun's alleged links to Beijing. 'The U.S. government and media have frequently hyped up the 'China agent' narratives—many of which were later proven to be entirely unfounded,' said embassy spokesman Liu Pengyu. 'China firmly opposes such ill-intended associating and unfounded smears.' Jarrod Schaeffer, a lawyer for Sun, on Thursday said 'shoving new charges' into an indictment with a trial approaching is 'unfortunate and telling'. 'The newest allegations continue the government's trend of making and publicising feverish accusations unmoored from the facts and evidence that we expect will actually come out at trial,' said Schaeffer, a partner at the New York-based law firm Abell Eskew Landau. 'Ms Sun vehemently denies these latest allegations and intends to vigorously contest them in court.' Ken Abell, a lawyer for Hu, did not immediately respond to a request for comment on the charges. During her time working for New York, according to the court filings, Sun allegedly helped shape state policy in exchange for millions of dollars in kickbacks and gifts. That included a 2024 Ferrari Roma sports car and property in Honolulu and on New York's Long Island worth about US$6 million in total, along with specially cooked salted ducks prepared for her parents by the Chinese consulate. Hu allegedly blocked representatives of Taiwan's government from meeting state officials, provided unauthorised invitation letters from the office for Chinese officials and tried to arrange for a high-level New York state official to visit China. Beijing sees Taiwan as part of China to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons . Hu faces earlier charges for money laundering conspiracy, money laundering and conspiracy to commit bank fraud. The defendants, both naturalised US citizens, are due to be arraigned on the latest charges on Monday. -- SOUTH CHINA MORNING POST
Time of India
2 days ago
- Time of India
Gujarat man held in New York for cheating elderly woman out of $80k
Ahmedabad: A 25-year-old man from Gujarat, Abhishek Patel, was arrested in Geneva, New York, on June 24 for allegedly duping an elderly resident in a telephone scam. Patel, originally from North Gujarat and now residing in Kingston, Pennsylvania, is accused of impersonating a Federal Trade Commission officer and extracting around $80,000 from the victim in two separate transactions earlier in June. According to the City of Geneva police department, Patel contacted the elderly woman over the phone and convinced her that she owed money to federal authorities. He allegedly persuaded her to hand over cash in person. On the second occasion, police set up a traffic stop and took Patel into custody soon after he visited the victim's house and collected more money. Police suspect that Patel conducted similar scams in other parts of New York state. He was booked for grand larceny in the second degree, a Class C felony, and was sent to the Ontario County jail. Patel was later released on his own recognizance and is expected to appear in court at a future date. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad His arrest adds to a growing list of Indian nationals held for defrauding senior citizens in the US using similar methods. In March 2025, a Vadodara man was held in New Jersey for being part of a syndicate that extracted over $1.2 million through similar tactics. In April, two youths from Mehsana were caught in Texas while acting as cash mules after elderly victims were manipulated through fake Internal Revenue Service calls.
Newsweek
4 days ago
- Business
- Newsweek
IRS Warning Issued for 2026 Taxes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Taxpayers could face significant hurdles during the 2026 tax filing season after the Internal Revenue Service (IRS) reduced its workforce by more than one-quarter in the past year, according to a new report delivered to Congress. National Taxpayer Advocate Erin Collins issued the warning on Wednesday, citing figures that show that the IRS employee headcount dropped by more than 25,000, marking the first official estimate of job losses tied to staffing initiatives under President Donald Trump's second administration. The House's "One Big, Beautiful Bill," expected before July 4, could create new complexities for the IRS, the report added. Key provisions retroactively apply to the 2025 tax year, such as disallowing Employee Retention Credit claims after January 31, 2024. The changes would require fast updates to tax forms and systems, increasing pressure on the agency's reduced staff. Erin Collins, national taxpayer advocate, speaks during a Financial Services and General Government Subcommittee hearing on "Internal Revenue Service: Narrowing the Tax Gap and Improving Taxpayer Services," on May 19, 2021, on Capitol Hill in... Erin Collins, national taxpayer advocate, speaks during a Financial Services and General Government Subcommittee hearing on "Internal Revenue Service: Narrowing the Tax Gap and Improving Taxpayer Services," on May 19, 2021, on Capitol Hill in Washington. MoreWhy It Matters The reduction of 26 percent of the IRS workforce comes as the agency prepares for new, complex tax law changes anticipated in congressional budget negotiations. Substantial staff losses and the prospect of a 20 percent reduction in the IRS budget, plus retroactive legislative changes, raise concerns about the agency's ability to process returns efficiently and deliver refunds, potentially affecting tens of millions of U.S. households and the federal government's ability to collect revenue. What To Know The IRS headcount dropped from 102,113 to 75,702 employees as of June. More than 17,500 employees accepted buyouts under the "deferred resignation program." The Trump administration's budget proposal features an additional 20 percent funding reduction for the IRS. Accounting for stripped Inflation Reduction Act supplemental funds, that represents a 37 percent budget cut compared to the previous year, the Associated Press reported. Collins wrote that "a reduction of that magnitude is likely to impact taxpayers and potentially the revenue collected." More than 80 million Americans will get tax rebates worth $2,942 on average following the 2025 filing season, the Internal Revenue Service (IRS) has said. Individual Returns Received: 140,633,000 Individual Returns Processed:138,057,000 Refunds Issued: 86,021,000 Average Refund Amount: $2,942 Refunds Issued by Direct Deposit: 81,032,000 Although Collins described the 2025 filing season as "one of the most successful filing seasons in recent memory," she warned that the IRS risks being unprepared for 2026 as a result of its reduced workforce and impending tax law changes. Collins said. "With the IRS workforce reduced by 26 percent and significant tax law changes on the horizon, there are risks to next year's filing season. It is critical that the IRS begin to take steps now to prepare," she said. Collins warned that without improved technology, IRS staffing cuts could jeopardize the success of next year's filing season She noted that important steps—such as hiring and training thousands of new seasonal and permanent staff—had not yet begun as of mid-2025. Where IRS Staffing Cuts Hit Hardest The cuts, which also resulted from a "deferred resignation program" linked to Elon Musk's Department of Government Efficiency, have particularly impacted taxpayer services, small business/self-employed divisions, and information technology teams, the tax watchdog's breakdown said. The IRS continued to struggle with an identity-theft backlog, with 387,000 unresolved cases as of June. On average, it took nearly 20 months to resolve a single case, marginally improving on previous performance. Collins called this "unacceptably long," warning that it disproportionately affects victims who rely on tax refunds for everyday expenses. What Happens Next The IRS must quickly hire and train thousands of employees and adapt its IT systems to manage new tax law requirements before 2026. The Treasury Department has requested $852 million to fund the efforts. Congressional actions on tax legislation and IRS budget proposals—expected before July 4—will determine the scale of changes and challenges for the next tax season. This article used reporting by The Associated Press.
USA Today
4 days ago
- Business
- USA Today
Retirees in these 9 states risk losing some of their Social Security checks
If you're not aware of your state laws, you could end up keeping less of your Social Security benefits. American seniors are heavily reliant on Social Security to make ends meet. Six in 10 retirees said their benefits are a major source of income in the most recent iteration of an annual Gallup poll. That's one of the highest responses since the poll's inception in 2002. Considering the huge importance of Social Security to retirees, it's essential for them to keep as much of their benefits as possible. Unfortunately, for some seniors living in nine states, they could see taxes take a big bite out of their monthly checks. Some retirees could lose up to 10% of their benefits to state taxes, depending on their income and where they live. How the federal government taxes Social Security While each state has its own rules and tax rates for Social Security, every American is potentially subject to taxes on Social Security income from the federal government. The IRS determines how much, if any, of your Social Security benefits are subject to income tax based on a metric called "combined income." To determine your combined income, take half of your Social Security income and add to it your adjusted gross income and any untaxed interest income. If that number exceeds the thresholds below, up to 85% of your Social Security benefits could count as taxable income. Data source: Internal Revenue Service. You might notice that the thresholds for combined income are relatively low. Considering the average retiree collects about $2,000 per month in Social Security, it doesn't take much to push a married couple into taxable territory. Congress hasn't updated those thresholds since enacting the laws that set them more than 30 years ago, and there's no built-in inflation adjustment. As a result, more and more retirees are facing Social Security taxes at the federal level each year. But the challenge is even worse for retirees living in the following nine states. They could be subject to state taxes as well. Nine states that could take some of your Social Security benefits Several states have eliminated taxes on Social Security benefits in recent years, including Kansas, Missouri, and Nebraska. There remain just nine states that still tax a portion of residents' Social Security benefits, depending on their income. If you live in one of them, it may be worth exploring your options to avoid taxation on your benefits, so you can keep more money for your retirement budget. Here are the basics. Colorado Taxpayers 65 or older or those with an adjusted gross income below $75,000 for individuals or $95,000 for joint filers are exempt from taxes on Social Security. Those with higher AGIs under age 65 can deduct up to $20,000 of the amount of Social Security income included on their federal tax return. Any amount above that will incur a 4.4% tax. Connecticut Taxpayers with adjusted gross income below $75,000 for individuals or $100,000 for joint filers are exempt from taxes on Social Security. Taxable benefits are limited to 25% of the total received for those with higher AGIs. The applicable tax rate ranges from 4.5% to 6.99%, depending on income. Minnesota Taxpayers with adjusted gross income below $84,490 for individuals and $108,320 for joint filers are exempt from taxes on Social Security. Every $4,000 of AGI above those thresholds increases the amount subject to taxes by 10% of the total benefits included on your federal income. The applicable tax rate ranges from 6.8% to 9.85%. Montana Any amount of benefits included in your federal income is also taxable at the state level. Taxpayers over the age of 65 receive an additional $5,660 deduction on their state taxes. The tax rate ranges from 4.7% to 5.9%. New Mexico Taxpayers with adjusted gross income below $100,000 for individuals and $150,000 for joint filers are exempt from taxes on Social Security. All other taxpayers must pay income tax on any amount included in their federal income. The applicable tax rate ranges from 4.9% to 5.9%. Rhode Island Taxpayers with adjusted gross income below $104,200 for individuals and $130,250 for joint filers are exempt from taxes on Social Security. All other taxpayers are taxed on any benefits included in their federal income. The applicable tax rate ranges from 4.75% to 5.99%. Utah Any Social Security income included in your federal taxes is also subject to state taxes. Taxpayers with adjusted gross income below $45,000 for individuals and $75,000 for joint filers qualify for a tax credit offsetting the taxes on Social Security included in their federal income. Those above the threshold may qualify for a partial credit. The applicable tax rate is 4.55%. Vermont Taxpayers with adjusted gross incomes below $50,000 for individuals and $65,000 for joint filers are exempt from taxes on Social Security income. Those within $10,000 of each threshold will qualify for a partial deduction. Those with AGIs exceeding $60,000 for individuals and $75,000 for joint filers will owe taxes on any amount of benefits included in their federal income. The applicable tax rate ranges from 3.35% to 8.75%. West Virginia Taxpayers with adjusted gross incomes less than $50,000 for individuals or $100,000 for joint filers are exempt from taxes on Social Security. Those with higher AGIs will owe taxes on 35% of any Social Security income included as part of their federal income. The applicable tax rate ranges from 4.44% to 4.82%. However, West Virginia will no longer tax Social Security income for anyone starting in 2026. Planning your retirement isn't just about avoiding taxes While taxes can be a big drag on your retirement budget, they shouldn't dictate where you retire. If you want to retire to the mountain communities of Colorado or Utah, potential taxes on your Social Security shouldn't hold you back. The cost of traveling to the mountains multiple times per year will likely outweigh the increased taxes of living there. You should also consider things like the cost of living, community, and proximity to family and friends in your retirement decision. If you optimize for those factors, it's probably worth paying a little more in taxes. Importantly, there are ways to avoid taxes on Social Security benefits by planning ahead. You can position your retirement and brokerage accounts to minimize your adjusted gross income, by taking capital gains and converting pre-tax retirement accounts to Roth accounts before starting Social Security. You'll have to weigh the long-term benefit to these strategies, as those moves usually result in a higher tax bill upfront. A tax professional or financial planner can help. On top of all that, you might find that your retirement destination changes its Social Security tax policy in the near future. West Virginia will eliminate the tax next year, and several other state legislatures have proposed bills to eliminate the tax as well. So you might be basing a decision on a policy that you're bound to outlive. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Yahoo
5 days ago
- Politics
- Yahoo
Alexandria woman embezzled more than $840,000 while working as campaign treasurer, authorities say
ALEXANDRIA, Va. () — An Alexandria woman pleaded guilty Monday to embezzling hundreds of thousands of dollars in campaign funds while serving as a treasurer for candidates running for political office. The U.S. Attorney's Office (USAO) said 59-year-old Katherine Margaret Buchanan was a political campaign compliance consultant for more than two decades, working for various campaigns and political action committees (PACs). Montgomery County teacher sues after Palestine flag removed from classroom She usually held the title of 'Treasurer' while in these roles. From 2020 through 2024, Buchanan used the access she had as treasurer to take campaign funds from her clients for her own personal use. The USAO detailed that she used these funds to pay off her personal credit cards or transfer funds to her bank accounts. At times, she also reportedly used official campaign or PAC credit cards to make personal purchases. Embezzled funds paid for her dining, landscaping, aesthetic services, a Peloton exercise bike, clothes, flights to Italy, concert tickets, yacht tours, legal fees and more. In all, she misappropriated over $840,006. Buchanan also under-reported her income from 2017 through 2022 to the Internal Revenue Service (IRS) to avoid paying taxes, the USAO added. This resulted in $671,200 in unpaid federal taxes. Woman accused of stealing over $26K from funeral GoFundMe arrested in Maryland She pleaded guilty on June 23 to embezzling campaign contributions from three federal candidates for political offices and committing tax evasion. She faces up to five years in prison for each charge. Buchanan's sentencing is scheduled for Oct. 8. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
