Singapore: O.K. Lim, children faces liquidators and HSBC in USD 3.5 bil civil lawsuit

Business

Published Fri, 11th August 2023
by Admin

Liquidators of Hin Leong, are suing Lim Oon Kuin and his two children to recover USD 3.5 billion (SGD 4.7 billion) in alleged debt and USD 90 million in dividends they allegedly paid themselves.

The Founder of Hin Leong Trading Lim Oon Kuin, also known as O.K. Lim, and his two children are facing the liquidators of Hing Leong and HSBC Holdings in a civil lawsuit trial that started on Thursday (10 August) at the Singapore High Court, according to The Straits Times.

Mr Goh Thien Phong and Mr Chan Kheng Tek, the liquidators, are suing Lim, his son Evan Lim Chee Meng and daughter Lim Huey Ching to recover USD 3.5 billion (SGD 4.7 billion) in alleged debt and USD 90 million in dividends they allegedly paid themselves.

Both liquidators also alleged that the Lim family had breached their fiduciary duties as directors and engaged in fraudulent trading.

The trial is expected to run for about 180 days till mid-November with more than 60 witnesses expected to be called in by the plaintiffs to testify in the trial.

HSBC Holdings alleged the defendants and O.K. Lim’s former personal assistant Madam Serene Seng “fabricated non-existent transactions” for it to disburse USD 111.7 million to Hin Leong.

O.K. Lim lawyers countered the claim of Mrs Seng and Ms Katherine Ong, a former senior accounts executive in Hin Leong’s treasury department, who have been subpoenaed by the liquidators to testify that they were instructed by the elder Lim to prepare fictitious documents, by saying they “have no credibility”.

According to the former tycoon’s opening statements, both have demonstrated to be “untrustworthy witnesses” in a trial where he is facing cheating and forgery charges, which began in April.

Mrs Seng is one of four defendants, along with three members of the Lim family, in a lawsuit filed by HSBC against the Lim family and a Hin Leong employee to recover USD 85.3 million of its USD 111.7 million exposure to Hin Leong.

Manifold Times in April previously reported the prosecution proceeded on three charges out of the total of 130 charges that O.K Lim is facing: Two counts of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of instigating a contracts executive of Hin Leong Trading to forge a false record.

The 130 charges were for the offences of cheating, abetment of forgery of a valuable security, and abetment of forgery.

The three charges relate to HSBC previously alleging Lim had falsified documents in order to obtain credit from the bank. In October 2020, HSBC filed for legal action against the Lim family and a Hin Leong employee to recover USD 85.3 million of its USD 111.7 million exposure to Hin Leong.

In its filing, HSBC alleged that it was “fraudulently deceived” into lending USD 111.7 million by signing off a forged invoice for cargo sold to China Aviation Oil (CAO) for USD 56 million, the other for cargo sold to Unipec Singapore for USD 55.7 million.

An extensive coverage by Singapore bunkering publication Manifold Times regarding the fall of Hin Leong can be found below:

Photo credit: Manifold Times
Published: 11 August, 2023

Singapore: O.K. Lim, children faces liquidators and HSBC in USD 3.5 bil civil lawsuit

Related Posts