O.K. Lim convicted in one of Singapore’s largest trade financing fraud cases.
SINGAPORE – Lim Oon Kuin, better known as O.K. Lim, founder of the now-defunct oil trading company Hin Leong, was sentenced to 17 years and six months in jail on 18 November 2024. The 82-year-old was convicted on three charges: two for cheating and one for forgery. Prosecutors described the case as one of the most severe trade financing frauds in Singapore’s history.
The court found Lim guilty of deceiving HSBC into disbursing US$111.6 million (S$150 million) through fabricated oil trading contracts with China Aviation Oil (Singapore) and Unipec Singapore. Of this, US$85 million remains an outstanding loss.
A Precedent-Setting Case
Judge Toh Han Li underscored the significant harm caused by Lim’s actions, noting that the fraudulent schemes risked undermining public trust in Singapore’s oil trading sector and financial ecosystem.
In his 68-page oral decision, the judge stated, “A deterrent sentence is warranted to prevent such offences from eroding confidence in trade financing services and potentially leading banks to impose stricter compliance or withdraw these services entirely.”
Lim’s sentence was reduced by one year due to his advanced age but not further diminished for his medical conditions. The judge emphasized that Singapore Prisons Service could adequately manage Lim’s healthcare needs.
Fraud Details and Consequences
Lim orchestrated the fraud by directing employees of Hin Leong to create forged documents and falsely claim the existence of oil sale contracts. These silent discounting transactions misled banks, as the purported buyers were not informed of the financing applications.
Deputy Chief Prosecutor Christopher Ong called Lim’s actions “the worst possible offences of cheating,” with each count warranting a sentence of 10 years. The forgery charge carried an additional nine-year term.
Despite the severe penalties, the judge noted that Lim’s motive was not personal greed but an attempt to alleviate Hin Leong’s cash flow problems and avoid margin calls. Nevertheless, the premeditated nature of the crimes aggravated the severity of the case.
Ongoing Financial Fallout
In September, Lim and his two children, Evan Lim Chee Meng and Lim Huey Ching, agreed to pay US$3.5 billion to Hin Leong’s liquidators. However, the family stated they lack sufficient assets to fulfill this obligation and will apply for bankruptcy.
A High Court hearing is scheduled for 26 November 2024 to address their bankruptcy applications.
Lim intends to appeal his conviction and sentence. His $4 million bail remains extended pending the appeal.
