Overview

On 31 January 2012, the FSA published findings of fraud and the imposition of a fine of £2,867,000 against Ravi Shankar Sinha, the former chief executive officer of JC Flowers' FSA-regulated European private equity business.

Mr Sinha had taken out substantial personal loans to fund co-investments. When the value of those investments fell during the financial crisis, he struggled to make repayments. He funded these repayments by entering into fraudulent schemes, first obtaining a personal loan from one of the fund's portfolio companies, then charging advisory fees to the same portfolio company, in each case without the knowledge or approval of JCF. In total, Mr Sinha dishonestly obtained €1.548 million in payments from the portfolio company over 8 months.

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