Lim Oon Kuin sentenced to 17.5 years in jail for orchestrating massive trade financing fraud

Lim Oon Kuin, better known as OK Lim, was sentenced on 18 November to 17 years and six months in jail for orchestrating one of Singapore’s largest trade financing fraud cases.

The 82-year-old founder of Hin Leong Trading deceived HSBC into disbursing at least US$111.7 million (S$150 million) using forged documents and fictitious oil trades.

Conviction and details

Lim was convicted on two counts of cheating and one count of abetting forgery following a 62-day criminal trial that concluded in May 2023.

The offences revolved around bogus transactions in March 2020, where Lim directed employees to fabricate documents purporting to show Hin Leong had entered into oil sales contracts with China Aviation Oil (Singapore) and Unipec Singapore.

The fraudulent transactions were supported by falsified discounting applications, which deceived HSBC into providing loans. Of the US$111.7 million disbursed, US$85 million remains unpaid, leaving the bank with substantial losses.

Principal District Judge Toh Han Li found that despite stepping down as managing director in April 2020, Lim continued to operate as the “big boss” of Hin Leong, maintaining hands-on control over its operations. He directed employees to carry out the fraudulent activities, requiring his approval for major trades.

Lim’s crimes led to the collapse of Hin Leong Trading, a once-prominent oil trading firm, and significantly tarnished Singapore’s reputation as a trusted hub for oil trading.

Prosecution’s stance

Prosecutors Christopher Ong, Kelvin Chong, and Foo Shi Hao sought a 20-year sentence, arguing that Lim’s offences constituted “the worst possible kinds of cheating.”

They highlighted the scale of the fraud, its potential to undermine confidence in Singapore’s financial sector, and the lasting damage caused to its oil trading industry.

Deputy Chief Prosecutor Ong stressed that Lim’s age and health conditions should carry little weight in mitigation due to the gravity of his offences. “No weight should be given to (Lim’s) age, given the gravity of the offences,” he said, adding that the crimes involved premeditated deception that shook the foundations of Singapore’s economic infrastructure.

Defence and appeal

Lim’s legal team, led by Senior Counsel Davinder Singh, argued for a reduced sentence of seven years, citing the 82-year-old’s medical conditions, including coronary artery disease, cerebral vascular disease, anxiety, depression, and cognitive impairment.

Singh pointed to “serious gaps” in a prison service letter presented by the prosecution, arguing it failed to address all of Lim’s medical needs, such as treatment for asthma and a large prostate.

However, the court found these arguments unconvincing, determining that Lim’s crimes warranted a severe penalty.

Lim plans to appeal against the sentence, according to his lawyers.

Broader financial fallout

The fallout from Lim’s actions has extended beyond the criminal case. On 30 September, Lim and his children, Evan Lim Chee Meng and Lim Huey Ching, consented to a US$3.5 billion judgment in favour of liquidators, acknowledging their inability to pay creditors due to insufficient assets.

The family has since filed for bankruptcy, with a related High Court hearing scheduled for 26 November to address their applications.

In a separate civil trial, HSBC was awarded US$85.3 million in damages from Lim, his family, and his personal assistant, bringing the 50-day case to a close.

Singapore’s reputation at stake

The case has drawn attention to vulnerabilities in trade financing processes and highlighted the risks posed by fraudulent activities in Singapore’s critical oil trading sector.

As one of the largest oil trading hubs in Asia, Singapore’s economy relies heavily on its reputation for transparency and reliability.

Authorities have emphasised the need for robust safeguards and accountability to prevent similar incidents in the future.

This conviction, they say, sends a strong deterrent message to the industry and reaffirms Singapore’s commitment to maintaining its status as a global trading hub.