A Hong Kong court quashes fraud conviction of ex-media mogul Jimmy Lai

Hong Kong’s Court of Appeal on Thursday overturned fraud convictions against Jimmy Lai, offering a rare legal victory for the embattled media tycoon who remains imprisoned on separate national security charges.

Lai, 78, the founder of the now-defunct pro-democracy newspaper Apple Daily, will remain behind bars despite this ruling. Just weeks ago, he was sentenced to 20 years in prison after being convicted under Hong Kong’s controversial national security law, which was imposed by China in 2020.

The fraud case centered on allegations that a consultancy firm controlled by Lai had improperly used office space leased by his media business. In 2022, Lai and co-defendant Wong Wai-keung were found guilty of concealing this arrangement in violation of lease terms, resulting in a five-year and nine-month prison sentence for Lai along with a HK$2 million ($257,000) fine.

The appellate court judges found fundamental flaws in the prosecution’s case, writing in their judgment that while Apple Daily Printing had indeed breached lease terms by allowing the consultancy firm to use part of the space, it “didn’t owe a duty to disclose its breach.” They further determined that even if such a duty existed, it couldn’t be legally attributed to Lai and Wong personally.

“The reasoning in concluding that the applicants were liable for the concealment as the prosecution contended is unsupportable,” the judges stated, dismissing both convictions and sentences after determining prosecutors had failed to prove “beyond reasonable doubt that the defendants had made false representations.”

Hong Kong’s Department of Justice responded to the ruling with a statement saying it would “study the judgment thoroughly and consider whether to appeal.” The government emphasized that while the court found insufficient evidence for fraud convictions, “it didn’t change the fact that Lai had used the office space for illegitimate personal purposes.”

This legal development could potentially reduce Lai’s overall prison time. When sentencing him on national security charges, the court had ruled that the two sentences would run concurrently for only two years, with the remaining 18 years to be served consecutively.

Lai’s case has become a focal point in the international debate over Hong Kong’s diminishing freedoms. Once a vibrant center of press freedom in Asia, Hong Kong has seen dramatic restrictions on independent media since Beijing’s implementation of the national security law. Apple Daily, Lai’s pro-democracy newspaper, was forced to close in 2021 after authorities froze its assets and arrested several executives.

The media mogul’s imprisonment has drawn condemnation from Western governments and human rights organizations. UK Foreign Secretary Yvette Cooper recently called for Lai’s release on humanitarian grounds, stating he was sentenced merely for “exercising his right to freedom of expression.”

Lai’s children have publicly expressed hope that U.S. President Donald Trump’s upcoming visit to Beijing from March 31 to April 2 might provide an opportunity to advocate for their father, who holds British citizenship.

Chinese and Hong Kong authorities have consistently defended their actions against Lai, maintaining that his national security case reflects proper application of the law and is unrelated to press freedom. Officials insist the national security legislation is essential for stability in the former British colony, which returned to Chinese rule in 1997 under the “one country, two systems” framework meant to guarantee certain freedoms for 50 years.

Critics, however, point to Lai’s case as emblematic of Beijing’s accelerating erosion of Hong Kong’s autonomy and civil liberties. With his lengthy sentence at his advanced age, many observers fear the prominent critic of China’s Communist Party could spend his remaining years in prison.