A failed oil trader in Singapore that owes creditors more than US$3.5 billion ($4.63 billion) is suing Deloitte & Touche LLP, alleging the auditing firm failed to detect “serious irregularities” in its financial statements for more than a decade.

Deloitte audited the books of Hin Leong Trading Ltd. for at least 16 years before the firm collapsed last year when founding tycoon Lim Oon Kuin admitted trading losses of US$808 million weren’t reflected in the firm’s financial statements, according to a court filing.

“Deloitte failed to detect the irregularities and the material misstatements” in Hin Leong’s financial affairs, a March 5 lawsuit filed with the High Court of Singapore alleges. “Deloitte acted in breach of the terms of its engagement with the plaintiff.”

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