Founder Of Singaporean Oil Trading Firm Sentenced To 17 Years In Jail For Fraud & Forgery
A Singapore court sentenced oil tycoon Lim Oon Kuin, also called OK Lim, to 17 ½ years in prison for cheating HSBC Holdings Plc while also involved in forgery.
The 82-year-old founder of the now-defunct Hin Leong Trading Pte. was charged with falsifying oil sales contracts, leading to a $111.7 million payment by HSBC in March 2020.
The court described Lim’s actions as one of the most serious cases of fraud in the country’s history. Judge Toh Han Li supported the harsh punishment, citing its deterrent impact, and rejected major concessions for Lim’s age or physical condition.
Lim, who appeared in court in a wheelchair and with a translator, has appealed the verdict through his lawyer, Davinder Singh.
Hin Leong Trading, once a leading name in Singapore’s oil trading sector, collapsed in 2020 due to hidden losses of $800 million during the pandemic-induced oil price crash.
The company, founded in 1973, had been in financial trouble for years while claiming yearly profits on its books.
The fraud was exposed when Lim’s risky bets on the crude oil market failed, revealing the company’s financial manipulation, including the use of the same cargo to obtain multiple loans.
The fall of Hin Leong shook Singapore’s commodity trading community, undermining the city-state’s status as a worldwide trading hub. It followed previous controversies involving companies like Noble Group, Agritrade International, and ZenRock Commodities Trading.
In a separate case, Lim and his children, Evan Lim and Lim Huey Ching agreed in September to pay $3.6 billion to Hin Leong’s liquidators and creditors, including HSBC.
However, the family has filed for bankruptcy. Their assets, including high-value properties in Singapore, are being liquidated to pay off debts.
Lim, who was born in China’s Fujian region, began his career as a small fuel supplier for fishing boats and local transport companies.
Over decades, he built Hin Leong into a dominant player in Asia’s oil trading market. By the 1990s, the company dominated the regional diesel and fuel oil sectors with storage tanks, terminals, and a fleet of tankers.
Despite his success, Lim’s aggressive and risky trading practices and the secrecy of the oil trading world eventually led to his downfall. Industry experts have acknowledged his contributions to Singapore’s oil trading sector but also emphasized the seriousness of his conduct.
One trader described Lim as a pioneer whose legacy has been tarnished by his wrongdoings.
References: Bloomberg, Reuters
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