Banker Banned from City for Life

Ravi Sinha was investigated by the Financial Services Authority (FSA) for embarking on a scheme to cover debts he had accrued by fictitiously invoicing a client advised by his employer.

The FSA said that in January 2009 Sinha approached the chief executive of an unidentified company claiming to have been authorised to request a loan of €248,396.67 – which was the same amount as a debt Sinha owed on a bank loan. Sinha later informed the company that JC Flowers would be charging advisory fees – which allowed him to pocket €400,000 on 21st May, €400,000 on 29th June, and €500,000 on 21st October.

Sinha’s scheme was uncovered on 26th October by JC Flowers, and he was dismissed by 11th November.

The FSA’s acting director of enforcement and financial crime, Tracey McDermott, said: ‘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.’

The FSA has passed the details to the City of London police – but no charges will be pressed. However, the fine imposed is likely to force Sinha into bankruptcy.

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