Jimmy Lai Pleads Not Guilty To Fraud

The founder of the now-defunct Next Digital, Jimmy Lai, on Wednesday pleaded not guilty to two charges of fraud, over the alleged use of the headquarters of his media company for purposes not specified in the lease.

The prosecution alleges that Lai, together with other people, concealed from the Hong Kong Science and Technology Parks Corporation that – between April 1, 1998 and December 31, 2015 – Next Digital's headquarters in Tseung Kwan O had been used for purposes other than those specified in two documents and a lease signed between the corporation and Apple Daily Printing Limited in 1999.

Furthermore, Lai and Next Digital’s former administrative director, Wong Wai-keung, are both also accused of similar concealment to the Science Parks between January 1, 2016 and May 19, 2020, together with the company's former chief operating officer Chow Tat-kuen and other people.

The prosecution alleged that the concealment and false representation had induced Science Parks to not take action to enforce its rights, resulting in benefit to the Apple Daily Printing and Dico Consultants, and prejudice to the parks

The court had earlier decided to separately handle the case for Chow, who also faces one count of fraud.

At the start of the 25-day trial at the District Court, Lai and Wong denied the charges against them.

Wong’s lawyer, senior counsel Maggie Wong, noted the prosecution’s opening statement had for the first time accused two other people of defrauding the corporation - in addition to her client and Lai.

The lawyer noted that the two additional people were Lai’s former assistant Mark Simon and Next Digital’s former in-house lawyer Rosa Ho. She said the prosecution should explain why a lawyer’s business dealings could form part of its case.

Judge Stanley Chan agreed to adjourn the hearing to next Tuesday, to allow time for the prosecution to clarify the matter.

Director of Public Prosecutions Maggie Yang told the court that the prosecution planned to summon 10 to 15 witnesses, and provide around 50 witness statements to the court.

Wong Wai-keung is on bail, while Lai is already serving time in prison for protest related offences and also faces multiple charges under the national security law.