Hin Leong Trading, founded in 1963 by Lim Oon Kuin, also known as OK Lim, developed into one of the largest oil traders in Asia.
With an extensive fleet of over 130 tankers through its subsidiary Ocean Tankers and a partnership with PetroChina on the Universal Terminal oil storage terminal, Hin Leong played a central role in the region’s energy sector.
The situation took a dramatic turn in April 2020 when Hin Leong filed for bankruptcy protection after uncovering undeclared losses of US$800 million. These losses, hidden from creditors and financial partners, triggered a major scandal that affected both the company and the management
Fake oil transactions
The 82-year-old was put on trial, accused of defrauding HSBC (Hongkong and Shanghai Banking Corporation) and contributed to falsification in connection with fake oil transactions. The charges centered on his instructions to employees to prepare forged documents for non-existent transactions, including futures contracts. These documents, which claimed that oil had been sold to China Aviation Oil and Unipec Singapore, led to HSBC disbursing millions in loans based on the false documentation.
These actions were part of a wider pattern where Lim hid significant losses from trading in the futures markets. He also manipulated the company’s oil inventory, which had already been pledged as collateral for loans, and sold this oil without informing the creditors.
The money from the sale was used as general funds for the company, allowing Hin Leong Trading to maintain its operational funding and conceal its actual financial conditions.
On 10 May 2024, Lim was found guilty of fraud and forgery and faces a lengthy prison sentence. The verdict will be announced in October.
