Former Chief Executive of JC Flowers’ London-based business, Ravi Sinha, has been banned from working in the City and fined £2.9 million by the Financial Services Authority after dishonestly raising £1.4 million to pay off his personal debts.
Although he was in receipt of a salary of £886,000 and received bonuses of approximately £1.3 million, Ravi Sinha fell foul of the global economic crisis and found himself in a large amount of debt. In order to pay off these debts, Sinha resorted to invoicing a fictitious client who was supposedly advised by his employers, JC Flowers. Sinha, who was only discharged from bankruptcy in August 2011, is now expected to plunge back into that state after his fraudulent activity was uncovered.
The Financial Services Authority’s acting Director of Enforcement and Financial Crime, Tracey McDermott, has explained the reasoning behind the ban. “Sinha exploited his position of trust as CEO to fraudulently obtain significant sums for his personal benefit. He engaged in a dishonest, deliberate and sustained course of misconduct which lasted for several months. Such behaviour has no place in the financial services industry. Mr Sinha engaged in this dishonest behaviour in order to obtain additional income to meet his pressing financial obligations,”
Sinha himself has issued an apology to his former employers regarding the matter: “I very much regret misleading JC Flowers over this issue and continue to offer my sincerest apologies to all those concerned. It was a foolish action which I completely regret, particularly in terms of the effect that it has had on my family. I will bear the consequences of my own actions long into the future.”
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