LIM Oon Kuin has been sentenced to 17 years and six months’ imprisonment on three charges of cheating and forgery, in a case that is described by prosecutors as “one of the most serious case of trade financing fraud that have ever been prosecuted in Singapore.”
In the sentencing hearing on Monday (Nov 18), District Judge Toh Han Li noted the need for a deterrent sentence because Lim – better known as OK Lim – had damaged Singapore’s standing as a bunkering and financial services hub and undermined the public’s confidence in the sectors.
“Such offences, if left unchecked, would be akin to a slow drip of a subtle but potent poison, that will inexorably and irremediably damage Singapore’s standing both as a financial hub as well as a preferred centre of commerce,” he said.
The charges related to two contracts for the sale of oil with China Aviation Oil Singapore (CAO) and Unipec.
The judge handed down a sentence of eight and a half years’ imprisonment for the charges relating to cheating and forgery with the CAO contract to be served concurrently, and a sentence of nine years for the cheating charge relating to the contract with Unipec. The contracts induced HSBC into disbursing money to Hin Leong.
The sentencing followed a 62-day trial, when Lim faced a total of 130 criminal charges of forgery and cheating involving a collective sum of US$2.7 billion; three charges were proceeded upon, and in May, he was convicted on all three of them.
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The court had found that the prosecution had proven the three charges beyond a reasonable doubt.
“The accused himself recognised (albeit in a different context) that it was ‘not correct’ to submit documents for discounting if it was not a done deal and there were no goods inside,” said Judge Toh in judgment in May.
Two charges against Lim were for cheating HSBC; the third was for instigating a contracts executive of Hin Leong to forge a document for the ultimate purpose of cheating. The charges involved a total of US$111.7 million, with HSBC suffering US$85 million in unrecovered losses.
The prosecution had sought a total of 20 years’ jail – the maximum sentence of 10 years for each of the cheating charges, and nine years for the forgery charge.
Lim’s defence counsel had sought seven years’ jail instead, arguing that given Lim’s advanced age – 82 – a 20-year sentence was akin to a life sentence. The judge disagreed, given the gravity of the offences, and said that “no more than one year’s discount should be granted”.
There was some mitigation given for Lim not acting out of personal greed, but to aid Hin Leong’s cashflow.
The defence had also argued that the cases cited by the prosecution, such as that involving the former Asia Pacific Breweries finance manager, Chia Teck Leng, did not take into account inflation. With inflation, Chia’s figures would have amounted to US$133.1 million, and unrecovered losses at US$93.5 million.
Chia abused his position as finance manager to swindle four foreign banks out of S$117 million from 1999 to 2003. He was sentenced to a total of 42 years’ jail for 14 offences, including eight cheating charges.
“In the circumstances, the sums involved in the present case certainly stood at the top tier of cheating cases, in terms of amounts involved,” said Judge Toh.
The embattled billionaire has said in a written statement, after an earlier hearing with the liquidators of his oil trading company Hin Leong, that he would appeal against the conviction.
Lim and his children, Lim Chee Meng and Lim Huey Ching, have agreed to pay the liquidators US$3.5 billion, and agreed to pay other creditors to focus on the appeal and their suit with law firm Rajah and Tann. All three have filed a bankruptcy application with the court.
Lim’s bail of S$4 million has been extended.
