Singaporean oil tycoon Lim Oon Kuin, the founder of the now-defunct Hin Leong Trading, faces a potential 20-year jail sentence for cheating and forgery, a sentence requested by the public prosecutor in a Singapore court on Tuesday, Bloomberg reports.
The 82-year-old, known as OK Lim, was wheeled into court and is set to be sentenced on November 18. The charges against him stem from one of the biggest trading scandals to hit the energy-trading hub, exposing widespread fraud and deception at Hin Leong.
The court heard that Lim, who filed for bankruptcy this week after agreeing to pay $3.59 billion to creditors, had instigated forgery and deceived HSBC Holdings Plc to secure loans. Prosecutors argued the scandal was “unprecedented” in Singapore’s history, while Lim’s defense team pleaded for a 7-year sentence, citing his age and health.
Lim’s downfall began in 2020 when it emerged he had hidden hundreds of millions in losses through oil futures speculation, selling inventories pledged as collateral for loans. This deception left over 20 banks with huge liabilities, tarnishing Singapore’s reputation as a leading energy trading hub.
The scandal has been compared to other high-profile cases involving Agritrade, Noble Group, ZenRock Commodities Trading, and Hontop Energy, all of which highlighted vulnerabilities in commodity financing.
Despite the severity of the allegations, Lim’s defense team argued for leniency due to his age and health. They highlighted his contributions to Singapore’s economy and emphasized his willingness to cooperate with authorities.
