Pricewaterhouse Coopers Advisory Services (PwC), which is the judicial manager of Hin Leong Trading, has sued Hin Leong founder Lim Oon Kuin (also known as OK Lim) and his two children, Evan Lim Chee Meng and Lim Huey Ching, in a bid to recover US$3.5 billion ($4.75 billion).
According to court documents seen by The Straits Times, PwC is alleging that the trio has committed a breach of fiduciary duties in their roles as directors, as well as fraudulent activities. Among the charges include a further $90 million, which the Lims were said to have paid themselves despite Hin Leong’s insolvency.
The accusations of fraudulent activities included "the creation of fictitious gains to conceal accumulated trading and other losses, the forgery of documents, the manipulation of Hin Leong's accounts through irregular accounting entries, the overstatement of Hin Leong's inventory and the obtaining of financing through improper means".
OK Lim was charged in court on August 14 with the abetment of forgery for the purpose of cheating. The elder Lim is out on bail for $3 million.
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