Singaporean courts delivered their verdict on Monday in a historic financial fraud case involving Lim Oon Kuin, also known as OK Lim. The former founder of Hin Leong Trading, one of the largest oil trading companies in Asia, was sentenced to 17 and a half years in prison for orchestrating a fraud of more than $100 million to the detriment of the HSBC bank.
The 82-year-old businessman was convicted in May 2024 on three counts, including falsifying documents and deception to obtain fraudulent financing. The prosecution had initially requested a sentence of 20 years, calling the facts “one of the most serious cases of financial fraud ever prosecuted in Singapore”. Despite his advanced age and health problems cited by the defense, the court found that the prison services had the necessary means to meet his medical needs.
An oil empire in decline
Once the flagship of Asian oil trading, Hin Leong Trading saw its reputation collapse in 2020, in the wake of the Covid-19 pandemic and upheavals in global oil markets. The company's collapse revealed questionable financial practices, including the concealment of $800 million in losses and debts approaching $4 billion.
In sworn testimony in 2020, OK Lim admitted that Hin Leong Trading had not generated profits for several years, contrary to the balance sheets published in 2019. According to prosecutors, Lim had ordered these losses to be hidden, which made the situation worse. financial affairs of the company and deceived creditors.
Sophisticated fraud and its repercussions
The charges against OK Lim mainly focus on fictitious oil sales contracts created to fraudulently obtain funds from HSBC bank. These transactions, entirely fabricated, allowed the former tycoon to receive nearly $112 million from the bank. These fraudulent maneuvers were described by the court as having “seriously tarnished” the reputation of Singapore, considered a central hub of the oil trade in Asia.
Although Lim pleaded guilty to some charges, he remains free after posting bail pending the hearing of his appeal in the High Court. This conviction marks a strong signal from the Singaporean justice system in its fight against financial crimes, thus reinforcing its desire to protect the integrity of its financial and commercial sector.
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