Ex-OW Bunker executive Lars Moller has seen his jail term increased from 18 months to five years following an appeal by prosecutors.
OW Bunker collapsed owing at least $150m in late 2014, just seven months after completing an initial public offering in the Danish capital Copenhagen.
“This is a big shock and the outcome is a very big negative surprise,” one of Moller’s defense lawyers, Arvid Andersen, told Reuters after Friday’s court decision.
OW Bunker is alleged to have collapsed partly due to losses on an estimated $120-$130m credit line given by its Singapore-based arm to small local company, Tankoil Marine Services.
Just over 12 months ago Moller, former head of the Singapore subsidiary Dynamic Oil Trading, was sentenced to 18 months.
The Western High Court said the former manager had been found guilty of a very gross breach of trust involving a large sum of money, significantly contributing to OW Bunker’s bankruptcy, Reuters reported.
“The defendant was continually informed about the problems with Tankoil without reacting, while during the whole period incorrect and misleading information was given to the management of OW Bunker with the defendant’s knowledge,” the court said in its verdict.
The bankruptcy of OW Bunker, then the world's leading supplier of marine fuel oil with a 7% market share, sent shockwaves through the global shipping industry.
Hedging losses of almost $300m at OW Bunker’s Danish headquarters also contributed to the collapse. The company was valued at $1bn when it listed in March that year.
