OK Lim Appeals 17.5-Year Sentence in Major Fraud Case

The founder of the now-defunct oil trading firm Hin Leong Trading, Lim Oon Kuin, commonly known as OK Lim, has appealed his conviction in a high-profile fraud case involving US$111.7 million. On October 24, 2023, Lim, 83, challenged the verdict that resulted in a 17-and-a-half-year prison sentence for cheating the Hongkong and Shanghai Banking Corporation (HSBC) and abetting forgery. The appeal follows a lengthy trial that highlighted fraudulent activities linked to the sale of oil and the submission of forged documents.

Details of the Case

The criminal case against Lim centered on two fabricated transactions involving China Aviation Oil (Singapore) Corporation and Unipec Singapore. These transactions led HSBC to release substantial loans to Hin Leong, totaling at least US$111.7 million. The prosecution described Lim as a “legend in Singapore’s oil industry,” asserting that he orchestrated one of the most significant cases of trade financing fraud in the country’s history.

In a session that extended over several hours, Lim’s lead lawyer, Senior Counsel Davinder Singh, argued that the district judge, Principal District Judge Toh Han Li, had made several errors in the conviction. Singh contended that there was insufficient evidence to prove that Lim directed his employees to forge documents or that he possessed any dishonest intent. He claimed that the prosecution had “changed its case” and failed to substantiate its core allegations.

Prosecution’s Argument and Response

Countering Singh’s assertions, Deputy Public Prosecutor Christopher Ong emphasized Lim’s inconsistencies during police questioning. Ong argued that Lim could not simultaneously claim confusion while also asserting that he remembered details of the events. He labeled Lim as “simply an unreliable witness,” suggesting that Lim’s efforts were aimed more at self-preservation than at protecting his employees.

Ong pointed out that Lim’s attempts to evade responsibility were evident, as he sought to buy time while the police gathered evidence against him. The prosecution maintained that Lim’s actions constituted a serious breach of trust and legal responsibility.

The case has drawn significant attention not only for the financial implications but also for the broader concerns regarding corporate governance in Singapore’s oil industry. The notable collapse of Hin Leong in April 2020, once one of the largest oil trading companies in Asia, raised several questions about oversight and accountability within the sector.

As the appeal progresses, Justice Hoo Sheau Peng has adjourned the case until November 14, 2023 to hear further arguments regarding Lim’s sentence. In addition to the criminal proceedings, Lim is also facing civil litigation initiated by liquidators against him and his family, culminating in a judgment of US$3.5 billion against them. The family was declared bankrupt in December 2022.

The legal troubles extend to Lim’s daughter, Lim Huey Ching, who recently went on trial for obstructing justice. She is accused of instructing an IT manager at Hin Leong to ensure the deletion of critical data, further complicating the family’s legal battles.

As the appeal unfolds, the outcomes could have lasting implications not only for Lim and his family but also for the integrity of the oil trading sector in Singapore.