KUALA LUMPUR, Malaysia — A prominent oil businessman from Singapore has received a 17.5-year prison sentence for his involvement in fraud and forgery, a case that has damaged Singapore’s reputation as a top oil trading location in Asia.

The individual, Lim Oon Kuin, aged 82, was found guilty in May on multiple charges, including cheating the Hongkong and Shanghai Banking Corporation (HSBC) and aiding forgery. In court, it was revealed that Lim utilized forged documents related to two fictitious oil trades to mislead HSBC, which resulted in the bank releasing credit totaling approximately $111.7 million. This incident marks one of the largest trade financing fraud cases recorded in Singapore.

Lim, a Chinese immigrant who established Hin Leong Trading in 1963, oversaw its rise to become one of the largest oil trading firms in Asia. However, the company faced a downfall in 2020 after making unsuccessful predictions regarding oil price rebounds following China’s measures to manage COVID-19.

In comments reported by The Straits Times, Judge Toh Han Li emphasized the necessity of a strict sentence to deter similar offenses and protect Singapore’s financial environment from being compromised, which could lead banks to implement more stringent compliance measures or even withdraw their trade financing offerings.

Following the ruling, Lim has filed an appeal against the sentence and has been released on bail as the legal proceedings continue.