The bank, which is owed some $600 million by embattled oil trading firm Hin Leong, is the firm's largest creditor and first to take legal action to recover losses.
HSBC is suing Hin Leong owner Lim Oon Kuin and his two children to recover $85.3 million (S$115.8 million) of the $111.7 million they received using fake invoices and documents, according to a report in «The Straits Times» on Friday.
The bank, which is also suing Serene Seng Hui Choo, a manager of the corporate affairs department at Hin Leong, filed the suit in the High Court on October 21, the report said (behind paywall).
Some 23 banks reportedly lent a total of $3.85 billion to the troubled oil trader, with HSBC reportedly believed to have the largest exposure. The oil trader overstated the value of assets by at least $3 billion by transferring money between bank accounts to create a false impression that accounts receivables were collected when no payments was actually received, according to a report.
PwC Suit
In September, the firm's judicial manager PwC took action against Lim, his son Evan Lim Chee Meng and his daughter Lim Huey Ching, who are both executive directors at the company, accusing them of fraudulent trading and breaching their fiduciary duties as directors.
According to the suit, the outstanding amount of $3.5 billion are Hin Leong's debts, which the Lim family are personally responsible for, without limitation of liability
