SINGAPORE, Oct 16 — Lim Oon Kuin, the founder of defunct oil trading giant Hin Leong Trading, will face sentencing on November 18 after being convicted of cheating and forgery in what prosecutors have described as "one of the most serious cases of trade financing fraud ever prosecuted in Singapore”.

According to The Straits Times (ST), the prosecution is seeking a maximum 20-year prison term for the 82-year-old, commonly known as OK Lim, whose fraudulent actions damaged Singapore’s reputation as a leading oil trading hub.

Lim was found guilty in May of two counts of cheating and one count of instigating forgery to deceive HSBC into disbursing US$111.6 million (RM479.2 million) to his company.

Of this amount, US$85 million remains unpaid, contributing to the collapse of Hin Leong, once one of Asia’s largest oil traders.

ST reported that prosecutors argued yesterday that Lim’s crimes, while financially damaging to HSBC, had wider implications for Singapore’s financial and oil trading sectors.

Deputy Chief Prosecutor Christopher Ong, addressing the court on 15 October, called for a total of 20 years’ imprisonment, arguing that Lim’s offences were "examples of the worst possible offences of cheating.”

"Lim’s offences affected the delivery of financial services in Singapore and tarnished Singapore’s hard-earned reputation as Asia’s leading oil trading hub,” he was quoted as saying.

The charges against Lim stem from fabricated contracts with China Aviation Oil (Singapore) and Unipec Singapore, which Hin Leong falsely claimed to have entered into.

Based on these fake contracts, Lim applied for financing, submitting forged documents to HSBC to secure the funds. The court found that these transactions were complete fabrications orchestrated by Lim.

In response to Lim’s request for a lighter sentence of seven years, Ong dismissed the plea, saying "No weight should be given to (Lim’s) age, given the gravity of the offences.”

ST said he added that even if Lim’s age were to be considered, "no more than one year’s sentencing discount should be granted.”

Ong pointed out that Lim’s fraud not only led to significant financial losses but also risked undermining public confidence in Singapore’s vital oil industry.

"Had there been actual harm, that would have made this a more aggravated offence,” Ong was quoted as saying.

He noted, however, that the damage was more reputational than physical.

He pointed to an April 2020 joint statement issued by the Monetary Authority of Singapore, Enterprise Singapore, and the Maritime and Port Authority of Singapore shortly after Hin Leong sought bankruptcy protection, saying this highlighted the broader concerns raised by Lim’s actions.

Lim’s defence, led by Senior Counsel Davinder Singh, argued that the alleged damage to Singapore’s financial services and economic infrastructure was overstated.

"To say that Lim’s two cheating offences within a span of four days affected Singapore’s financial services and economic infrastructure is a stretch,” Singh was quoted as saying.

He also contended that HSBC was willing to disburse the funds despite incomplete documentation, implying that the bank did not suffer as severely as claimed.

Singh further argued that Lim’s offences were not difficult to detect, as Lim himself revealed to HSBC that there were no underlying transactions.

"The only reason it was detected was because Lim told the bank there were no underlying transactions,” he said, suggesting that Lim’s admission indicated some level of transparency.

Another point of contention was Lim’s health.

The defence cited a long list of medical conditions, including anxiety, depression, heart disease, and a reliance on a wheelchair, as reasons to reduce the sentence.

Singh argued that the Singapore Prison Service might not be able to adequately care for all of Lim’s health needs, asking the court to consider whether Lim would "suffer disproportionately” in prison.

Ong, however, dismissed these concerns.

"There is nothing to suggest Lim will suffer disproportionately from being in prison, given the provisions that can be made,” he said, noting that Lim would be assessed fully upon admission to Changi Prison and could be housed in special assisted-living facilities or the Changi Medical Centre if needed.

Ong also questioned whether Lim had shown any true remorse for his actions.

"When has Lim ever apologised for having defrauded HSBC by perpetrating these offences for which he has been convicted?” he asked.

Lim’s sentencing marks the end of a dramatic fall from grace for a man once considered a titan of Singapore’s oil trading industry.

His actions not only led to the collapse of his family business but also raised concerns about the integrity of Singapore’s trade financing system.

As Ong put it: "It would be unjust if, having been able to engineer such fraud at such age, Lim then escapes the consequences of his crime by using his age as an excuse.”