The Court of Appeal today allowed an appeal by Lai Chee-ying in a fraud case, while the Government said the objective fact remains that he exploited public resources for private use.

On October 25, 2022, the District Court had convicted Lai Chee-ying of two counts of fraud, and Wong Wai-keung, then a director of administration, of one count of fraud. Following a hearing in January 2025, the appellate court set aside their sentences.

In a statement, the Government said it is an indisputable fact that Lai Chee-ying has exploited the Hong Kong Special Administrative Region’s valuable public resources for over 20 years.

The Government noted the Court of Appeal judgement clearly pointed out that Lai Chee-ying's private company, Dico Consultants, occupied and used the premises in the Tseung Kwan O Industrial Estate, while Apple Daily Printing breached the leasing instrument terms.

The statement added that both the appellate judgment and the trial judge's reasons for verdict revealed the lease clearly stipulated the premises may only be used for publishing and printing business, and must not be occupied by any third party without approval from the Hong Kong Science & Technology Parks Corporation (HKSTPC).

The Government said that for more than 20 years, Apple Daily Printing had allowed Dico Consultants to occupy and use the premises to handle the private affairs of Lai Chee-ying and his family without the knowledge of HKSTPC.

If further emphasised that while the Court of Appeal considered the breach did not reach the threshold for a criminal fraud conviction in this specific factual context, the objective fact remains that Lai Chee-ying exploited public resources for private use.

The Government also pointed out that the Hong Kong courts have always exercised judicial power independently, with all judgments handed down in an open and transparent manner. It added that the District Court conducted the trial impartially.

While the defendants lodged an appeal in accordance with the law, the Government noted the Court of Appeal allowed the appeal while providing a detailed explanation of its reasons.

Under Hong Kong’s fair and impartial legal system, both the trial court and the Court of Appeal handled the case openly and transparently.

The statement noted that Lai Chee-ying is currently serving a 20-year prison sentence following his conviction by the Court of First Instance of the High Court for three national security offences.

It emphasised that while the appeal in the fraud case has been allowed, the ruling does not alter the fact that Lai Chee-ying must serve his 20-year sentence for endangering national security.

The Government also made it clear that the Department of Justice acts strictly in accordance with the Prosecution Code. It added that prosecution was only instituted because there was sufficient admissible evidence to support a reasonable prospect of conviction and the move was in the public interest.

The Department of Justice will study the Court of Appeal's judgment on the fraud case thoroughly to consider lodging an appeal.