Prosecutors at West Kowloon Court presented the findings of a financial investigation into 76-year-old Lai and his associates over an alleged conspiracy to instigate international sanctions and hostile activities against mainland China and Hong Kong following the 2019 anti-government protests.

The report, signed by police Senior Inspector Hung Lai-fan, said Lai had a long history of funding local and overseas political entities, transferring a combined HK$5.7 million (US$729,485) from his personal bank accounts to recipients such as a former US senior official, a conservative American think tank and Hong Kong Catholic leader Joseph Zen Ze-kiun between 2013 and 2019.

Witness can start testifying against ex-boss Jimmy Lai, Hong Kong court hears

Lai also reportedly funded pan-democratic political parties and two law firms, which had represented opposition politicians in criminal proceedings, by using bank accounts held by his right-hand man, former US intelligence agent Mark Simon, and local and overseas corporations under their control.

“Lai had a long history of financing local and overseas entities with political backgrounds,” said prosecutor Crystal Chan Wing-sum, citing the report, which was not disputed by the defence.

The court heard that beneficiaries included ex-legislator Au Nok-hin and the Democratic Party, Civic Party, Labour Party, League of Social Democrats and Hong Kong Alliance in Support of Patriotic Democratic Movements of China, the organiser behind the city’s annual Tiananmen Square vigil.

Hong Kong’s Jimmy Lai ‘gave more than HK$8.9 million to anti-China group’

The payments were all allegedly made before the Beijing-imposed national security law took effect in June 2020.

“It is obvious that Lai made use of Simon’s [bank] account to dissipate his funds for years for suspicious purposes,” Chan said.

The ninth day of the trial continues on Wednesday afternoon.

Apple Daily founder Lai was slapped with two conspiracy charges of collusion with foreign forces under the Beijing-invoked national security law, and a third conspiracy charge by invoking colonial-era sedition legislation.

Hong Kong’s Jimmy Lai set up English Apple Daily to win US support, court hears

The prosecution earlier alleged Lai, 76, had exercised full control over Apple Daily and given instructions to its senior editorial staff when the tabloid published 161 seditious articles between April 2019 and June 2021, 31 of which were said to have also called for foreign sanctions after the national security law took effect.

Lai was also said to have financed and orchestrated an international lobbying campaign titled “Fight for Freedom, Stand with Hong Kong” in a bid to convince the United States and her allies to introduce sanctions and trade restrictions, as well as sever agreements with Hong Kong concerning the extradition of fugitives and mutual legal assistance.