Lars Møller. Image Credit: Dynamic Oil Trading
Prosecutors have told the Danish High Court they want Lars Møller to serve five years in prison for his role in the 2014 collapse of OW Bunker.
They say he granted credit to Singapore bunker supplier Tankoil that was way above his official $10 million remit, secretly allowing the debt to spiral to $156 million.
This, combined with what OW chalked down to a $150 million “risk management” loss when the price of oil plummeted, ultimately led to the company’s collapse just seven months after its IPO put its value at $1 billion.
Møller denies this, and says the relationship with Tankoil was different to regular customers as they were a subcontractor with fluid credit terms.
He says top management knew of, and welcomed, the Tankoil debt, with Group CEO Jim Pedersen understanding that such a situation was needed to meet the desired level of growth.
Last year he was sentenced to 18 months in jail having been found guilty on the lesser charge of breach of trust.
Both sides appealed the decision.
Møller’s defense lawyers' will make their final remarks of the eight-day appeal on Wednesday.