Bunker Trader OK Lim Hospitalized Just Before Prison Term Begins

OK Lim at the peak of his fuel-trading empire (Hin Leong Trading)

Former bunker-trading magnate OK Lim (Lim Oon Kuin) has been hospitalized with breathing difficulties, just days ahead of the planned start of a long prison sentence for defrauding his bankers.

Lim, 84, was found guilty of three charges of cheating and abetting forgery in connection with a fraud scheme at his now-defunct trading house, Hin Leong Trading Pte Ltd. The court found that Lim concealed years of losses by fraudulently obtaining extra trade financing for oil cargoes, sometimes multiple times for the same lot. The scheme collapsed in 2020 and the firm folded, prompting extended bankruptcy proceedings and a criminal investigation.

Lim initially faced 130 charges related to the firm's collapse, but prosecutors narrowed the case to focus on two contracts that purported to show the sale of oil products to China Aviation Oil (Singapore) and Unipec Singapore. Neither transaction occurred, and prosecutors claimed that Lim directed the creation of paperwork for the deals, then applied for financing from banker HSBC based on the value of nonexistent receivables. He obtained a loan of about $111 million on these false pretenses, prosecutors said.

Lim was convicted on all three counts and sentenced to 17 years in 2024, despite his medical conditions; the judge cited a need to send a "deterrent" message to future wrongdoers. Lim appealed the sentence, and a judge agreed to reduce it to 13.5 years due to his advanced age and his efforts to make restitution payments to his creditors. He was scheduled to surrender to begin his prison term on April 1.

On March 28, Lim was hospitalized in Singapore after his family members found him in distress in his study. He was disoriented and having difficulty breathing, son Evan Lim Chee Meng told The Straits Times. As of the 31st, it was not clear whether Lim would be in good health to begin his sentence on time.