24 June 2013 Last updated at 06:45 GMT
Top Hong Kong official Mak Chai-kwong guilty of fraud
The scandal damaged Hong Kong Chief Executive CY Leung's credibility
Hong Kong's former development secretary, Mak Chai-kwong, has been convicted of fraud.
Mr Mak was found guilty by Hong Kong's District Court of conspiring with an official in a housing allowances fraud worth HK$700,000 ($90,300; £56,000).
The men were accused of concealing financial interests in flats they rented from each other's wives.
Mr Mak resigned when he was arrested in July 2012, less than two weeks after he began his term.
The scandal was seen as damaging the credibility of Chief Executive CY Leung, who chose Mr Mak to be his development secretary.
Hong Kong's Independent Commission Against Corruption (ICAC) said Mr Mak and Tsang King-man, assistant director of the Highways Department, had "conspired together to defraud the Hong Kong Government" between 1985 and 1990.
Mr Tsang was also convicted of the charges. The pair will be sentenced on 8 August.
