AFP News
O.K. Lim, the 82-year-old former founder of the now-defunct Singapore oil trading firm Hin Leong Trading, was sentenced to 17 and a half years in prison on Monday for orchestrating one of Singapore’s largest financial fraud cases. Lim was convicted in May for defrauding global banking giant HSBC out of millions of dollars, leading to a massive scandal in the country’s oil trading industry.
The conviction stems from Lim’s role in deceiving HSBC into disbursing $112 million, using fabricated oil sales contracts as a ruse. The judge, Toh Han Li, noted that the amount involved in the case was significant, labeling it one of the most serious cases of cheating in Singapore’s history. Despite the severity of the crime, the judge granted a reduced sentence due to Lim’s age, although he made it clear that no further leniency would be given based on health concerns, as the Singapore Prison Service offers adequate medical facilities.
The case, which involved over 130 charges, saw prosecutors securing convictions on just three counts: two for cheating HSBC, and one for encouraging a Hin Leong executive to forge documents. Prosecutors described the fraud as one of the most severe instances of trade financing fraud ever prosecuted in Singapore. The defence, however, argued for a sentence of just seven years, emphasizing Lim’s deteriorating health and advanced age.
Hin Leong Trading, once a major player in Asia’s oil trading market, collapsed dramatically in 2020 when the COVID-19 pandemic triggered a downturn in global oil markets. Lim’s company had hidden nearly $800 million in losses over several years, despite reporting healthy financials in 2019. When the company sought court protection from creditors, Lim admitted to the massive cover-up, revealing that Hin Leong owed nearly $4 billion to various banks.
The scandal not only tarnished the reputation of Lim and his company but also dealt a blow to Singapore’s standing as a leading global oil trading hub. Lim’s conviction and sentencing highlight the severe consequences of financial misconduct in one of Asia’s most prominent financial centers. While his legal team has indicated plans to appeal the verdict, Lim remains free on bail as the case proceeds through the court system.