Hong Kong court hears tycoon Jimmy Lai transferred tax haven company to middleman who linked him up with global lobbying group

The court heard the dormant company, based in the British Virgin Islands, a UK Overseas Territory and tax haven, was wholly owned by Lai.

The tycoon, his right-hand man Mark Simon and Chow were the authorised signatories for its bank account before Chan took control in January 2020.

Simon, who formerly worked for US naval intelligence, explained to Chow the change in Lacock’s ownership was approved by their boss Lai.

“He came to my office and explained that because this Chan Tsz-wah helped Mr Lai with some businesses, Mr Lai passed this company to him as a reward. I didn’t ask any further,” Chow said.

The witness, who was Next Digital’s chief financial officer and chief operating officer, added he had no knowledge about Chan nor the reason for the transfer of ownership.

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Chan, who has also appeared as a prosecution witness, earlier testified that he had linked the tycoon to activists from SWHK to agitate for international sanctions and other hostile acts against Hong Kong and mainland China.

Robert Pang Yiu-hung, Lai’s senior counsel, highlighted that Simon’s conduct and statements could not be used to implicate his client, but might demonstrate the degree of involvement by the US national, who was alleged to be a co-conspirator in the case.

Anthony Chau Tin-hang, for the prosecution, drew the witness’s attention to email correspondence that detailed Lai’s personal expenses in May and June 2019.

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He questioned the purpose of the transfer of HK$3 million (US$383,592) to Simon for what was said to be his “projects”.

Chow said he believed Simon was involved in some overseas publicity campaigns, but that he knew nothing of the details.

Chow’s testimony continues on Wednesday.