High Court of Hong Kong Overturns Jimmy Lai’s Fraud Conviction; 20-Year Sentence Remains

Hong Kong democracy activist and media tycoon Jimmy Lai arriving at the Court of Final Appeal. December 31, 2020 / Voice of America)

[People News] On Thursday (February 26), Hong Kong’s High Court ruled that Next Digital founder Jimmy Lai’s appeal in a 2022 fraud case was successful, overturning his conviction and original sentence of five years and nine months’ imprisonment. However, Lai remains subject to a separate 20-year prison sentence in a case involving the Hong Kong National Security Law.

According to a report by Radio Free Asia, the Court of Appeal panel consisted of Chief Judge Jeremy Poon and Justices Maggie Poon and Derek Pang. Reading out the judgment in court, Jeremy Poon stated that the prosecution had failed to prove that the defendant made false representations and had not established the legal elements required for criminal fraud. The court therefore allowed the appeal and quashed both the conviction and the sentence. Lai did not appear in court.

In the written judgment, the three judges noted that the trial court had erred in its application of the law. As a result, they allowed the appeals of Lai and a co-defendant, overturning the original convictions and sentences.

Legal Reasoning and Key Issues

An unnamed legal professional told Radio Free Asia that the key issue in overturning the conviction was whether the legal elements of fraud had been satisfied. “A fraud conviction requires proof of a false representation and an intent to deceive. If the evidence is insufficient, the court has a duty to correct the lower court’s ruling,” the source said. The individual added that such cases often involve distinctions between contractual liability and criminal liability, and the appellate court’s analysis showed that the evidentiary standard in ordinary criminal cases remains stringent.

The case stemmed from lease arrangements at the Apple Daily headquarters. Prosecutors alleged that a consulting company personally held by Jimmy Lai operated within the newspaper’s premises in violation of lease terms signed with Hong Kong Science and Technology Parks Corporation. In 2022, the trial court ruled that the conduct constituted fraud, sentencing Lai to five years and nine months in prison, imposing a fine of HK$2 million, and barring him from serving as a company director for eight years.

Former Apple Daily chief administrative officer Wong Wai-keung, who had been convicted in the same case, also had his conviction and sentence overturned the same day. The judgment stated that the trial court had erred in its application of the law.

A spokesperson for the Hong Kong Special Administrative Region government responded that authorities would carefully study the judgment and consider whether to file a further appeal. The spokesperson said the conduct in question was “objectively in breach” but did not specify whether new legal proceedings would be initiated. According to RTHK, the Department of Justice said it would review the written judgment to determine whether to appeal to the Court of Final Appeal.

National Security Sentence Unchanged

A Hong Kong journalist who has long covered court proceedings told Radio Free Asia that the ruling carries symbolic significance at the procedural level. “A successful appeal shows that the system still allows for correction of errors. But the fraud case was an ordinary criminal matter arising from a commercial dispute, and it is different in nature from the national security case,” he said. He added that public attention remains focused on Lai’s national security conviction.

On February 9, Lai was sentenced to 20 years in prison on two counts of “conspiracy to collude with foreign forces” and one count of publishing seditious materials. The case is regarded as one of the longest sentences imposed since the implementation of the Hong Kong National Security Law. The court held that Lai had used media platforms to call for foreign sanctions against Hong Kong and Chinese Communist Party officials, constituting a violation of the law.

Now 78 years old, Lai has been in custody since late 2020, spending most of that time in solitary confinement in a high-security prison. His family and several human rights organizations have expressed concern about his health. Hong Kong authorities have stated that the arrangements comply with his own wishes and emphasized that prison management is conducted in accordance with the law.

Broader Reactions and Next Steps

Regarding the appeal outcome, a Hong Kong political commentator told Radio Free Asia that different groups may interpret the decision differently. “Supporters may see this as evidence that judicial procedures still function, while critics will continue to focus on the length of the national security sentence,” he said. He added that while individual case outcomes may not change Hong Kong’s overall political environment, they may serve as indicators in assessing the state of the rule of law.

The UK Foreign Office has previously stated that Jimmy Lai’s case raises concerns about judicial independence and press freedom in Hong Kong. The U.S. State Department has also called on Hong Kong authorities to safeguard fundamental rights.

Despite the fraud conviction being overturned, Jimmy Lai must continue serving his sentence. Unless there are legal changes to the national security case in the future, his prison term will remain unaffected. Previously, only two years of the fraud sentence had been allowed to run concurrently with the national security sentence. With the fraud conviction now quashed, his overall sentence structure may be adjusted, but the actual release date will depend on further legal proceedings related to the national security case.

Whether the case proceeds to the Court of Final Appeal will be closely watched.