Govt drops further legal action against Jimmy Lai after fraud conviction quashed

The Department of Justice will not pursue further legal action against former Next Digital founder Jimmy Lai Chee-ying after his fraud conviction involving the illegal use of land in the Tseung Kwan O Industrial Estate was overturned last month.

A government spokesperson confirmed the decision in response to inquiries on Wednesday (Mar 11), while strongly condemning Lai's actions despite halting further legal challenges.

Lai and Next Digital administrative director Wong Wai-keung were initially convicted of two counts of fraud following a trial over lease violations, and the two individuals appealed the ruling. 

They were accused of concealing the unauthorized use of the Apple Daily headquarters in the Tseung Kwan O Industrial Estate by Dico Consultants Limited, Lai's private firm, for several years.

Lai was originally sentenced to five years and nine months in prison with a HK$2 million fine, and disqualified from holding company management roles for eight years. Wong was sentenced to 21 months behind bars.

The Court of Appeal ruled in their favor last month, stating the defendants had no legal obligation to disclose the breach of contract, and their convictions were quashed and sentences were set aside.

However, a government spokesperson noted in a statement that while the Court of Appeal found the breach of contract did not meet the threshold for a criminal fraud conviction under the specific circumstances of the case, it does not alter the "objective fact" of Lai's long-term misuse of public facilities.

The statement noted that the court's written judgment and the original trial judge's ruling clearly indicated that the lease restricted the building's use exclusively to publishing and printing operations.

Allowing a third party to occupy the space was strictly prohibited without prior approval from the Hong Kong Science and Technology Parks Corporation (HKSTP).

The spokesperson accused Lai of continuously abusing the city's valuable public resources, as Apple Daily Printing allowed Dico to operate within the building for over two decades to manage private affairs for Lai and his family, without the HKSTP's knowledge. 

"It should be condemned," the spokesperson said. The decision not to take further legal action in the case was made after comprehensively considering all relevant factors.