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SINGAPORE: The founder of Singaporean oil trading company Hin Leong was charged in court on Friday (September 25) with aiding in forgery for the purpose of cheating, police said.
Lim Oon Kuin, 78, now faces two counts of complicity in forgery, following the first count on August 14.
LEE: Founder of local oil trader Hin Leong accused of complicity in forgery for the purpose of cheating
Friday’s charge accuses Lim of instigating Hin Leong contract executive Freddy Tan Jie Ren to falsify an email allegedly sent by Hin Leong Trading to China Aviation Oil (Singapore) on February 26 in connection with a transaction from sale of sulfur Gasoil 10PPM.
“This email, along with the certificate of transfer between tanks mentioned in the first charge, was sent to a financial institution to secure more than US $ 56 million (S $ 77 million) in commercial financing,” police said in a statement. press.
If convicted, Lim could face up to 10 years in jail and a fine for each count.
Investigations are under way into the other crimes allegedly committed by Lim, police added.
Hin Leong, one of Singapore’s largest independent oil traders, is now struggling to pay off his $ 3.85 billion debts.
Police confirmed in April that they were investigating Hin Leong, after the firm filed for bankruptcy amid a revelation from its founder that it had not disclosed hundreds of millions in losses for several years.
READ: Police investigating debt-laden oil trader Hin Leong Trading: what we know so far
Lim had ordered the company to hide nearly $ 800 million in losses from oil futures speculation over the years.
An affidavit signed by Lim cited the collapse in world oil prices, triggered by the COVID-19 outbreak and a price war between Big Oil, and the lack of hedging policies as some of the factors behind the difficulties. financial company.
The affidavit, which said Lim would immediately resign as director of the family business, did not specify for how many years the losses were incurred.
READ: Hin Leong’s Lim Family Seeks To Prevent Law Firm From Taking A Role In Court
READ: Hin Leong’s financial woes ‘have no serious impact’ on Singapore’s oil trading and fueling sectors – agencies
In May, Singaporean shipping company Ocean Tankers, a Hin Leong unit, applied to be placed under the direction of a court-appointed supervisor.
A report filed in June in Superior Court later found that the company had obtained financing from several banks for oil shipments that did not exist, complicating competing property claims.
