British regulators have fined the former head of the British arm of New York-headquartered private equity firm JC Flowers for fraudulently invoicing a company it invested in to prop up his crumbling finances.

The UK Financial Services Authority has fined Ravi Shankar Sinha £2.87 million ($4.52 million) for fraudulently obtaining £1.37 million for himself from a company owned by a private equity fund advised by JC Flowers. The penalty consists of £1.367 million disgorgement, and a £1.5 million punishment. Sinha is also prohibited from performing any function in relation to any regulated activity in the financial services industry.

The FSA says that Sinha, who was chief executive of JC Flowers UK between May 2005 and November 2009, suffered a very significant deterioration his financial position from 2007 onwards due to the financial crisis. And, it says that he borrowed heavily to finance investments, whose performance declined, and left him unable to service his debts.

It says that in response to his deteriorating financial position, between February and October 2009 Sinha invoiced a company, in which the JCF Funds had invested, for fees payable to himself. In order to secure payment of the invoices, Sinha deliberately misled the company’s CEO by claiming that the payments had been authorised and approved by JC Flowers UK, when in fact no such authorisation or approval had been sought or given. And, it says he dishonestly concealed from the firm that he had received the payments from the company.

“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,” said Tracey McDermott, acting director of enforcement and financial crime.

“Sinha becomes the latest in a long line of dishonest individuals who have found themselves facing substantial fines and being banned from working in financial services. Those who take on the responsibility of being an approved person should be in no doubt about our commitment to take the strongest action to tackle such behaviour — wherever we find it,” McDermott added.