15-10-2024 (SINGAPORE) Lim Oon Kuin, the 82-year-old founder of Hin Leong Trading, is set to be sentenced on 18 November for what prosecutors have called “one of the most serious cases of trade financing fraud” ever prosecuted in the city-state.
The octogenarian, widely known as O.K. Lim, was convicted in May on two counts of cheating and one count of instigating forgery for the purpose of cheating. The prosecution has called for a maximum sentence of 20 years, citing the gravity of Lim’s offences and their potential impact on Singapore’s reputation as Asia’s premier oil trading hub.
Deputy Chief Prosecutor Christopher Ong argued that Lim’s actions “affected the delivery of financial services in Singapore, and tarnished Singapore’s hard-earned reputation”. The prosecution’s stance reflects the severity with which Singaporean authorities view financial crimes that could undermine the nation’s standing in the global economic arena.
Lim, once a legend in Singapore’s oil industry, was found guilty of deceiving HSBC by fabricating oil sale contracts to China Aviation Oil (Singapore) and Unipec Singapore. These fictitious transactions, created under Lim’s direction, led to the bank disbursing US$111.6 million (S$146.1 million) to Hin Leong. Of this sum, US$85 million remains outstanding.
The prosecution has requested that the sentences for the two cheating charges run consecutively, potentially resulting in a 20-year imprisonment term. They argue that Lim’s offences represent “examples of the worst possible offences of cheating” and warrant the harshest possible sentence.
In response to the defence’s mitigation plea for a seven-year sentence, prosecutors maintained that Lim’s age should not be a mitigating factor given the gravity of his crimes. They further contested claims that no actual harm was done to the oil trading industry, suggesting that the mere potential for harm is sufficient cause for concern.
The case has raised questions about the resilience of Singapore’s financial and economic infrastructure. Prosecutors pointed to a joint statement issued by key Singaporean authorities in April 2020, shortly after Hin Leong sought bankruptcy protection, as evidence of the wider implications of Lim’s actions.
Defence counsel Senior Counsel Davinder Singh challenged the prosecution’s assertions, arguing that linking Lim’s offences to broader impacts on Singapore’s financial services and economic infrastructure was “a stretch”. Singh also raised concerns about Lim’s numerous medical conditions and whether the prison system could adequately address them.
