Media mogul arrested under security law

Media mogul Jimmy Lai Chee-ying was held overnight after his arrest for allegedly providing financial support to "a gang" allegedly colluding with foreign forces, under Hong Kong's new national security law.

Lai was among 10 people - including his two sons and four Next Media group senior executives - arrested in what police said was a case involving providing financial support from an overseas bank account to "a gang" calling on foreign countries to sanction Hong Kong after the new law came into effect on June 30.

The 72-year-old Next Media founder was also arrested for sedition and conspiracy to defraud, police said.

Also arrested were Lai's eldest son Timothy and second son Ian.

The father and sons were held overnight at Mong Kok police station.

Also arrested were four senior executives of Next Media group - chief executive Cheung Kim-hung, executive director Royston Chow Tat-kuen, administrative director Wong Wai-keung and animation manager Ng Tat-kwong.

They were held for suspicion of collusion with a foreign country or external elements to endanger national security and conspiracy to defraud.

Two more men were arrested in the afternoon - activist Andy Li Yu-hin and former Scholarism member Li Chung-chak - for violating the national security law. Police also arrested activist Agnes Chow Ting at her home in Tai Po last night.

Police said the 10, aged between 23 and 72, were arrested under the controversial law imposed by Beijing on Hong Kong, which carries up to life imprisonment for an offense of a grave nature, as well as conspiracy to defraud and money laundering.

Police said there may be further arrests.

Speaking to reporters outside police headquarters in Wan Chai last night, senior superintendent Steve Li Kwai-wah of the new National Security Department said they had been investigating a gang which "promoted and actively called on foreign countries or international organizations to sanction or to blockade Hong Kong." He said this group was still actively operating after the national security law took effect on June 30. Among the 10 arrested, five men and a woman were involved in this gang, he said.

"We found that two men and one woman are running this gang in Hong Kong," Li said, and that the trio were responsible for its daily operation.

"We also found that a group of people, who are all senior executives of a media [organization], used an overseas bank account to provide financial support to this gang," he said.

He added it involved "a lot" of money.

Police said that, among the six males arrested, two were also involved in the collusion with foreign forces. Li said the defraud charge involved "cheating" behavior for charging a lower rent for factories at the company's site.

He said the arrests had nothing to do with the US sanctions on 11 Hong Kong and mainland officials, including Chief Executive Carrie Lam Cheng Yuet-ngor and Commissioner of Police Chris Tang Ping-keung. "It's not a revenge. It's not politically related," he said.

It is understood that Mark Simon - Lai's right hand man who is out of town - is now wanted by the police. He wrote on Twitter about the arrest yesterday morning.

Simon is believed to be on the US East Coast and told the media earlier that he only stays in Hong Kong for five months a year. The American, a former CIA employee, and was the media group's advertising director.

Officers arrived at Jimmy Lai's home on Kadoorie Avenue in Ho Man Tin at about 7am and escorted him out with his hands handcuffed at about 9.30am. Police also took away a blue suitcase from his house.

He was taken to Kowloon City police station first and stayed there for half an hour before being escorted to Next Media headquarters in Tseung Kwan O before 11am, where more than 200 police officers armed with a search warrant searched the building for six hours. They searched his office and the newsroom on the 2nd floor.

After a three-hour search, Lai was taken to Mong Kok station at about 2pm.

"There is nothing I could be worrying about. Let's cross that bridge when we come to it," Lai replied to journalists about his group's future as he walked out of the building escorted by police.

Asked whether his arrest was political, Lai said: "You need to ask the police."

About the same time, the media group's chief executive Cheung was also handcuffed as he left the building and told reporters that Apple Daily would "fight on."

At about 2.30pm, police seized 25 boxes of exhibits from the media's headquarters, including documents and computers.

It is understood police also searched the accounting department and server room, and seized documents of Apple Daily Charitable Foundation.

Meanwhile, a separate team raided and searched YakiniKuu Japanese BBQ restaurant in Central, owned by Ian Lai, at about 1pm.

After 20 minutes, police seized a pile of documents, a computer and monitor.

More reports: Page 2; Editorial: Page 4

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