Fraud Trial Set to Begin for Lars Møller, Former CEO of Singapore's DOT, Over Role in Collapse of OW Bunker

Lars Møller was been charged with fraud in Denmark. Image Credit: Dynamic Oil Trading

The trial of Lars Møller, the former CEO of Singapore's Dynamic Oil Trading (DOT), is set to commence on April 4 over his involvement in the 2014 collapse of parent company OW Bunker.

As Ship & Bunker previously reported, last July Møller was charged by Denmark's general prosecutor of committing fraud of agent for more than DKK800 million ($130 million).

The Danish citizen is alleged to have provided credit outside of his mandate to two companies, Tankoil and Petrotec, that were essentially the same entity and controlled by Dennis Tan.

No-one else has been charged in relation to the now-infamous bankruptcy.

• Read More:  Tankoil / Dynamic Oil Trading Relationship Examined: Ex-Singapore Top 10 Bunker Supplier Owed DOT $156 Million at Time of Bankruptcy

For the record, Møller has maintained his innocence throughout the affair and his lawyer, Arvid Andersen, has previously said his client had no criminal liability.

Rather, it was a case of "untimely lack of care" and the question is not if illegal activity has taken place, but whether internal guidelines have been broken, he says.

As such, the case is expected to hinge on exactly how much OW Management knew about Møller's activities.

"Obviously, the more management knew, the less obvious it will be that my client has committed a misconduct," Andersen told Danish media this week.

Danish news outlet Finans.dk reports that witnesses summoned for the trail include former DOT CFO Kimmie Goh, former OW Bunker CFO's Morten Skou and Kent Larsen, OW Bunker's former board chairman Niels Henrik Jensen, and Søren Johansen, the former deputy chairman and partner of capital fund Altor, the previous owners of OW Bunker.

One of the pivotal figures in the saga, former OW Bunker CEO Jim Pedersen, died last year age 57.

Should he be found guilty, Møller faces up to eight years' imprisonment.

Former bunker industry giant OW Bunker declared bankruptcy in November 2014, just seven months after an otherwise successful $1 billion IPO, after suffering a combination of alleged fraudulent activity at DOT as well as other "risk management" related losses.