Singapore Oil Tycoon Faces Sentencing in Landmark Fraud Case
Lim Oon Kuin, widely known as O.K. Lim, the founder of the now-defunct Hin Leong Trading, is set to be sentenced on Monday in one of Singapore’s most significant fraud cases. Convicted in May, Lim was found guilty of deceiving HSBC into disbursing millions of dollars, a scandal that has tarnished the city-state’s reputation as a leading Asian oil trading hub.
Hin Leong Trading, once among Asia’s largest oil trading firms, collapsed dramatically in 2020 amidst the global oil market turmoil triggered by the COVID-19 pandemic. The firm’s downfall revealed hidden financial troubles, including $800 million in concealed losses and $4 billion in debts owed to banks.
Prosecutors have sought a 20-year prison sentence for the 81-year-old businessman, calling the case “one of the most serious trade financing frauds ever prosecuted in Singapore.” They described how Lim fabricated oil sales contracts and directed an employee to forge documents, enabling him to cheat HSBC out of nearly $112 million. The defence, citing Lim’s age and health, argued for a lighter seven-year sentence, downplaying the harm caused.
Lim founded Hin Leong in the 1960s with a single delivery truck, growing it into a regional powerhouse that supplied ship fuel and played a pivotal role in Singapore’s rise as a global shipping and oil trading hub. However, its collapse exposed years of financial mismanagement and deceit. In a 2020 affidavit, Lim admitted the company had falsified its profits and sold inventory meant to secure loans.
Judge Toh Han Li is expected to deliver the sentence at 2:30 PM (0630 GMT) Monday, marking the end of a case that has shaken Singapore’s financial and oil trading sectors.
