COPPER trader Mr Yasuo Hamanaka yesterday pleaded guilty to covering up massive trading losses that depressed world copper prices and battered the image of his 300 year old company.
The former star trader at Sumitomo Corp, who was arrested October 22nd and charged with forging signatures and swindling a Sumitomo subsidiary out of £513 million sterling, entered the plea at the first day of his trial at Tokyo District Court.
Prosecutors allege Mr Hamanaka made the fraudulent transactions to cover up his massive losses in copper trading, estimated by Sumitomo at £1.6 billion.
Prosecutors read out a summary of the two charges of forgery and fraud, alleging that Mr Hamanaka faked his superiors signatures. When asked if he was guilty of each charge, Mr Hamanaka calmly said, "That is correct."
The scandal, which broke last June, raised questions about the accountability of Japanese firms, disrupted world copper prices and called into doubt the management practices at one of the country's most powerful companies.
