Tokyo police arrest rogue copper trader
Wednesday 23 October 1996
The arrest marks the first significant development in an investigation that has involved police and regulators in Britain and the US, as well as in Japan.
The arrest did not follow a request from the Serious Fraud Office in the UK, which yesterday said its own inquiry into Mr Hamanaka's trading activities was continuing.
An SFO spokesman said: "The Japanese investigation is obviously different from the SFO's ... so our investigation continues as it has done."
In June, Sumitomo sacked Mr Hamanaka, its head of copper trading, after the original announcement that he had lost the company $1.8bn, much of it in dealings on the London Metal Exchange. Estimated losses have since risen, mounting further yesterday as copper prices, to which Sumitomo is still tied by Mr Hamanaka's outstanding trading positions, slipped slightly, despite substantial reductions in LME stocks.
Japanese television yesterday showed an unshaven Mr Hamanaka being driven from the Tokyo Public Prosecutor's Office to the city's detention centre. His home in nearby Kawasaki was raided by investigators who carried away bags of documents.
The Japanese investigation is focusing on metal trading contracts sent to a subsidiary of Merrill Lynch. The documents, dated January and September 1994, bear the signatures of two Sumitomo executives and authorise Mr Hamanaka to carry out trades in the company's name through Merrill Lynch Pierce Fenner and Smith, a subsidiary.
In the September document, Mr Hamanaka was authorised to name recipients of funds in connection with metal trading between Sumitomo and Merrill Lynch Pierce and other Merrill Lynch group companies.
In New York, a Merrill Lynch spokesman said: "We conducted all of our business with Sumitomo in an entirely proper manner."
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Russian girl takes her own life after parents find pornography on her computer
- 3 Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Russian girl takes her own life after parents find pornography on her computer
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...