Hin Leong oil tycoon OK Lim, 82, sentenced to 17.5 years' jail
Lim Oon Kuin will appeal against the sentence and remains out on bail of S$4 million.
CNA
SINGAPORE: Lim Oon Kuin, the elderly founder of collapsed oil trading firm Hin Leong Trading, was on Monday (Nov 18) sentenced to 17-and-a-half years in jail in a cheating case involving at least US$111.7 million (S$150 million).
The 82-year-old, also known as OK Lim, had orchestrated one of the most serious cases of trade financing fraud in Singapore, the prosecution previously told the court.
Lim faced more than 100 charges and contested them at trial, but was convicted of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery.
His conviction involved two bogus transactions for the sale of oil, and the submission of forged documents that led HSBC to disburse at least US$111.7 million in loans to Hin Leong.
On Monday, Lim's lawyer Senior Counsel Davinder Singh said that his client will appeal against the sentence. Bail was set at S$4 million.
Lim arrived at the State Courts in a wheelchair pushed by a caretaker. He remained seated in his wheelchair when his sentence was read out to him.
Delivering the decision, Principal District Judge Toh Han Li said that Lim's offences involved a "staggeringly large" amount of money compared to other cheating cases in Singapore.
He said Lim's conduct affected Singapore's financial services and a deterrent sentence was needed to prevent offences from pervading the financial ecosystem, which could lead to banks imposing stricter rules of compliance or withdrawing their trade financing services entirely.
He also agreed with the prosecution that Lim's offences had the potential to undermine public confidence in Singapore's oil trading industry.
"In my judgment, (Lim's) offences would have the potential to impact the bunkering and oil trading sector as (Hin Leong) was one of the largest players in the industry and the offences involved trade financing fraud by (Hin Leong) of financial institutions in oil trading," said the judge.
However, the judge pointed out that Lim did not personally benefit from his offences, but committed them to stave off margin calls and improve Hin Leong's cash flow situation.
As Lim did not offend out of "personal greed", Judge Toh said he did not agree with the prosecution that Lim should get the maximum jail term of 10 years for each of his two cheating charges.
The judge also took into account the fact that HSBC was partially repaid about US$26.4 million from Hin Leong's HSBC account, which significantly offset the bank's initial losses.
Deputy Public Prosecutors Christopher Ong, Kelvin Chong and Foo Shi Hao sought 20 years' jail for Lim. They previously argued that his charges were "examples of the worst possible kinds of cheating" and could undermine confidence in Singapore's oil trading industry.
They also said no weight should be given to Lim's age or his medical conditions given the gravity of his offences.
Lim is represented by a team of lawyers from Davinder Singh Chambers, who asked for a jail term of seven years.
Mr Singh previously argued there were "very serious gaps" in a letter from the prison service, which the prosecution used in saying that Lim's needs can be met in jail.
The letter did not address all of Lim's medical conditions, which include anxiety, depression, insomnia, a large prostate, asthma, coronary artery disease and cerebral vascular disease with cognitive impairment, Mr Singh said.
On Monday, Judge Toh arrived at the sentence of 17 years and six months after reducing Lim's jail term by one year on account of his age.
He noted previous court decisions which held that old age is generally not a mitigating factor except where the sentence effectively amounts to a "life sentence", which would have a crushing effect on the offender.
In reducing Lim's sentence, the judge said he had considered Lim's long jail term balanced against the gravity of his offences, the need for deterrence, and the fact that he was able to commit his offences at the age of 78.
However, Judge Toh did not make any reduction on account of Lim's medical conditions.
According to doctors who gave evidence in the trial, Lim suffers from chronic nerve compression, orthopaedic issues and muscular atrophy.
He is wheelchair-bound and at high risk of falls, and requires assistance in all activities of daily living, including getting dressed, getting out of a bed or chair, and using the toilet.
Referring to past court decisions, Judge Toh said that the issue was not one of Lim's medical ailments, but whether the consequences of Lim's medical conditions would transpire whether he was in or out of prison.
"If the consequences of his medical condition would transpire even if he was outside of prison, then no adjustment should be made to the sentence," said the judge.
He agreed with the prosecution that a medical report on Lim suggested his health would naturally deteriorate regardless of his imprisonment.
Judge Toh also noted that the prison service's letter provided information on two housing options to address Lim's medical conditions during his incarceration.
Lim could be housed in Changi Medical Centre, where he would have access to medical facilities and be assisted by nurses who are on duty throughout the day.
Alternatively, he could be housed in the prison's assisted living cells, which have grab bars, non-slip flooring and beds.
Judge Toh said that the prison service's response on these housing options catered to Lim's medical conditions and meant that it could address Lim's medical needs at an "acceptable standard", even if this may not be the "best medical standard".
Lim's trial, which started in April 2023, centred on who had directed Hin Leong staff to prepare the documents that made it seem like the oil trader had entered into two bogus transactions.
In May, Judge Toh delivered his judgment that Lim had directed his employees to forge the documents for the two purported transactions in March 2020.
Lim was the managing director and 75 per cent shareholder of Hin Leong, an oil trading company incorporated in Singapore, at the time of the offences.
Judge Toh found that Lim continued to be the "big boss" of Hin Leong even after stepping down in April 2020, that he was "hands on" and that his approval was required for trades.
Lim was also embroiled in a civil trial brought by liquidators against the Lim family. This concluded after Lim and his two children consented to a judgment of US$3.5 billion being entered against them.
In September, Lim, his daughter Lim Huey Ching and his son Evan Lim Chee Meng also said that they will file for bankruptcy as they do not have enough assets to pay their claimants.
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