Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


More On

FSA issues one of the highest fines ever against an individual

U.K.’s financial authority is imposing tougher enforcement against fraud

The U.K.’s Financial Services Authority (FSA) has issued one of the highest fines ever against an individual for fraud.

Ravi Sinha, former chief executive of private equity firm J.C. Flowers, is accused of issuing invoices to a company J.C. Flowers invested in between February 2009 and October 2009 to "address his pressing financial obligations and cash-flow problems," the FSA said. 

According to the authority, Sinha deliberately misled the CEO of the company he was investing in by erroneously claiming that the payments had been authorized and approved by J.C. Flowers to secure payments of the invoices. Using this method, Sinha was able to secures three loans—one for €250,000, one for €400,000 and one for €500,000.

"Sinha exploited his position of trust as CEO to fraudulently obtain significant sums for his personal benefit," said Tracey McDermott, the FSA's acting director of enforcement and financial crime, in a statement. "He engaged in a dishonest, deliberate and sustained course of misconduct which lasted for several months. Such behavior has no place in the financial services industry."

The FSA has ordered Sinha to pay a fine of £2.87 million ($4.51 million), which includes £1.37 million to repay fraudulently obtained funds and punitive damages of £1.5 million. Sinha is also prohibited from ever working in the financial services sector of the U.K.

Read more about this story.


Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.