OK Lim held accountable, liquidators seek US$111.7 billion from ex-oil tycoon

$111.7B Bank Fraud And Forgery Case Under Criminal Prosecution

In Singapore, on the 10th of August, the creator of the no longer operational oil trading firm Hin Leong Trading, Lim Oon Kuin, was taken to court by liquidators. As per sources, they are required to settle a whopping amount of US$3.5 billion ($4.7 billion) in outstanding debts owed by the company. Moreover, they are also being held responsible for alleged years of dishonesty.

Based on CNA's report, the elderly ex-billionaire in the oil industry, who is also recognized as OK Lim, along with his children, supposedly attempted to present Hin Leong as a prosperous and thriving firm to keep receiving financial support, even though the company had been incurring substantial losses for an extended period.

It is claimed that the Lims deceived banks by concealing their true financial condition in order to obtain additional funding. The alleged fraudulent activities include selling the same cargo to multiple parties, using cargo as collateral that Hin Leong did not possess or exaggerating its quantity, and employing counterfeit sales agreements and invoices.

Lim, along with his daughter Lim Huey Ching, son Evan Lim Chee Meng, and the required liquidation, has been instructed to compensate Hin Leong with a whopping $3.5 billion. This sum, as of April 2020, encompasses the entirety of the company's unsecured loans.

The liquidators have demanded that the three Lims take full legal responsibility for Hin Leong's debts.

The father and his two offspring from the Lim family are additionally being requested to return $90 million in dividends that were not rightfully disbursed to them during the years 2017 and 2018.

On the other hand, they are seeking reparation for the Lims' breaches of fiduciary and additional responsibilities.

According to the lawyer, the initial declaration from the principal attorney conveyed the explicit message that despite Hin Leong's bankruptcy since 2012, the Lim family permitted the company to continue operating deceitfully under the guise of being profitable, all the while accumulating additional financial liabilities.

According to him, they achieved this by engaging in deceitful and unfair conduct. This involved fabricating profits to hide their mounting trading losses, counterfeiting documents, manipulating Hin Leong's records by making inappropriate accounting entries, exaggerating the value of Hin Leong's stock, and acquiring funding through dishonest methods.

In spite of Hin Leong facing bankruptcy from 2012 onwards, the Lim family permitted the operation to persist under the guise of prosperity, all the while accumulating fresh financial obligations, as stated by the lawyer.

Mr. Bull stated that both of Lim's kids were involved in Hin Leong, with Mr. Evan Lim being actively engaged in trading while his sister took charge of managing the finances and accounts.

In addition to persisting with this scheme, the Lim household also managed to extract $90 million in dividends from Hin Leong in 2017 and 2018, even though the company was experiencing financial losses during that period, as reported by Mr. Bull.

He alleged that Lim had instructed to hide losses amounting to approximately US$800 million, and he subsequently reassured the employees that he would take the blame for it.

But according to Mr. Bull, Lim and his son are now claiming innocence and contradicting their previous statements about the fraudulent activity.

He asserted that at present, they are leveling accusations at their staff members.

Mr. Bull urged the court to contemplate why "ordinary staff members" who had no individual interest in the fraudulent scheme would behave in such a manner.

Mr. Bull expressed his belief that the Lim family should take responsibility for their deceitful actions.

Moreover, the Lims are currently facing a lawsuit from the Hongkong and Shanghai Banking Corporation (HSBC) over two applications. The bank alleges that these applications were accompanied by fraudulent paperwork and led to HSBC making a payment of US$111.7 million to Hin Leong in March 2020.

Senior advocate Sarjit Singh Gill, who represents HSBC as the main lawyer, argued that it was "wicked" of the Lims to attempt to undermine employees who were "very devoted to them" as it was actually the Lims themselves who "stood to benefit from all these deceptive actions."

As indicated in the reports, Lim sought legal representation from a team of lawyers belonging to Davinder Singh Chambers under the guidance of Senior Counsel Davinder Singh.

His daughter is receiving legal support from a team at Advocatus Law, while his son was also provided with legal representation by lawyers from Damodara Ong LLC.

The legal proceedings involving charges against the wealthy oil magnate are currently ongoing in the State Courts, while the civil litigation presided by Justice Philip Jeyaretnam is set to commence.

He is currently being prosecuted for committing fraud against a bank and promoting the act of forgery, involving an immense sum of US$111.7 billion.

In October, Lim had a planned appearance at the State Courts for the upcoming phase of his criminal trial.