- Illustrative photo.
SINGAPORE: The sole director of a firm dealing with automotive lubricants misappropriated S$404,000, used his ill-gotten gains to gamble and lost more than S$800,000.
Hendra Lim Yew Keng, 51, who is no longer a director at Exlube, was sentenced to two years and 10 months’ jail on Wednesday (Feb 19) after he pleaded guilty to one count of criminal breach of trust.
The Singaporean has declared bankruptcy and has not made restitution.
Deputy Public Prosecutor David Koh said that Lim set up Exlube in September 2016.
Around April 2017, he received a large order for petroleum products from China-based firm Xiamen Yuan Yi Trade Co.
Lim, who did not have enough funds, approached the director of another firm called Eng Soon Auto and asked if the company was willing to finance more than $504,000 towards the order.
Eng Soon Auto agreed to do so, and as part of the arrangement, the sum would be paid to Exlube to finance the purchase of the petroleum products.
According to the arrangement, after the petroleum products were sold to Xiamen Yuan Yi, Eng Soon Auto would receive the financed amount back, together with a 5 per cent profit.
On May 4, 2017, Eng Soon Auto transferred more than $504,000 to Exlube’s account, which had a balance of only around $6 at the time.
Later that day, Lim withdrew $200,000 from Exlube’s account, and deposited half of the amount into an account belonging to a firm called Bavarian Motors, which he had set up with two friends in 2015.
He transferred the other $100,000 into his account at the Resorts World Sentosa casino, the court heard.
Lim later withdrew $304,000 from Exlube’s account, and used the money to gamble at the Resorts World Sentosa and Marina Bay Sands casinos.
From May 5 to 8, 2017, he lost more than $800,000 through gambling.
DPP Koh said: “As the (money Exlube received) was not used to finance the purchase of the petroleum products, no goods were eventually purchased by Exlube.
“Xiamen did not... receive the goods they sought to purchase. Eng Soon did not receive a return of the sum or the promised 5 per cent profit.”
Lim did not tell Eng Soon Auto and its director what happened to the money.
When they asked him about the progress of the transaction, he claimed that there were various delays in the supply of the stock.
Eng Soon Auto eventually started a civil suit against Lim for the repayment of the sum. He declared bankruptcy and the suit was discontinued.
Eng Soon Auto’s director filed a police report on Sept 18, 2019, and Lim was charged in court in 2024.
On Feb 19, defence lawyer Christopher Bridges pleaded for his client to be given up to two years’ jail.
Bridges said: “The accused committed the offence on the spur of the moment. In a moment of folly, he believed that he could win even more money and decided to go and gamble.”
The lawyer added that Lim, who is still a bankrupt, has quit gambling.
Lim’s bail has been set at $20,000, and he is expected to begin serving his sentence on Feb 28. - The Straits Times/ANN
