Hong Kong media mogul Jimmy Lai denied bail in fraud case after magistrate decides he is a flight risk
- Lai, and Next Digital executives Royston Chow and Wong Wai-keung charged with defrauding government-owned business
- All three could face more serious charges as police investigate whether they broke national security law
Lai is likely to spend Christmas behind bars, after he and two senior executives from Next Digital, Royston Chow Tat-kuen, and Wong Wai-keung, were charged with defrauding a government-owned enterprise by breaching land-lease terms.
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Hong Kong pro-democracy media mogul Jimmy Lai in custody over alleged fraud
With the next hearing expected on April 16, Lai could spend the next four months and 13 days in prison. In contrast, Chow and Wong were granted bail.
All three were arrested by the police force’s national security unit in a high-profile operation that saw more than 200 officers raid the company’s Tseung Kwan O offices on August 10.
The new police unit initially cited alleged collusion with foreign forces in apprehending the three and Lai’s associates, but did not lay any charges stemming from the Beijing-imposed legislation on Thursday.
However, the Department of Justice requested a magistrate appointed by the chief executive preside over Thursday’s hearing. Senior public prosecutor Ivan Cheung Cheuk-kan said police were investigating the national security charges “expeditiously without delay”, and were confident they could make further progress before the next hearing.
Lai, 73, has been accused of improperly subleasing office space at Apple Daily Printing Limited to a secretarial firm, Dico Consultants Limited, between June 27, 2016, and May 22, 2020.
The prosecution alleged such activity violated the terms of a 1999 land lease by the Hong Kong Science and Technology Parks Corporation, enabling Dico to evade land premiums and Next Digital to earn rent from Dico.
Chow, 63, Next Digital’s chief operating officer and chief financial officer, and chief administrative officer Wong, 59, have been accused of involvement in the same fraudulent scheme.
Cheung asked that no plea be taken from the defendants, because police needed more time to inspect bank statements and financial records of the companies concerned.
Chief Magistrate Victor So Wai-tak, one of six magistrates hand-picked by Hong Kong leader Carrie Lam Cheng Yuet-ngor to adjudicate national security proceedings, denied bail to Lai after the prosecution objected to his temporary release.
But he granted bail to Chow at HK$200,000 and a surety of the same amount to be paid by his wife. He also granted Wong bail at HK$100,000.
The pair were ordered to remain in Hong Kong and report to police regularly before the next hearing.
Fraud is an offence under the Theft Ordinance which is punishable by 14 years imprisonment. National security offences carry sentences ranging up to life behind bars.
Next Digital published an announcement after the hearing, saying even though its board of directors believed the case would have little impact on the company’s daily operations, it would “closely monitor and review the situation” in future.
Trading of the group’s shares on the Hong Kong stock exchange was suspended on Thursday, but will resume on Friday morning.
