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The case discusses how Yasuo Hamanaka (Hamanaka), the chief copper trader at Japan''s Sumitomo Corporation caused major losses to the company through his unauthorised trading activities in the physical and futures market in copper at the London Metal Exchange. It traces the complete sequence of events leading to the revelation of the scandal. The case also highlights the reasons for the copper debacle, including the lack of proper managerial supervision and operational control systems and the misuse of authority by Hamanaka. The case aims to teach students how mismanagement of trading in commodity derivatives can lead to significant financial losses. The case is designed to enable students to: (1) study the events and analyse the reasons that led to the huge losses of Sumitomo Corporation; (2) discuss the importance of proper supervision and control systems in a trading firm to mitigate risks; (3) understand how derivatives can be utilised effectively as a risk management tool; (4) discuss the role of regulatory authorities in prevention and reduction of financial crimes. The case is targeted at MBA/PGDBA students and is intended to be part of the finance curriculum. The teaching note does not contain an analysis of the case.