Ravi Sinha, the former boss of private-equity giant JC Flowers in the UK, has been fined £2.86m and banned from working in any kind of financial services business for life.
Mr Sinha, who headed the firm's attempts to buy Northern Rock before it was nationalised, was sacked and reported to the Financial Services Authority (FSA) in 2009 by JC Flowers shortly after Sir Callum McCarthy, former chairman of the regulator, became its UK chairman.
The FSA said Mr Sinha had fraudulently charged fictitious invoices to a company in which JC Flowers funds had invested, totalling £1.37m.
Between May and July in 2008 he borrowed almost €9m (£7.5m) to fund personal investments. Some of these were made in companies where Flowers funds were also invested.
When his behaviour came to light Flowers suspended him in November 2009 and then sacked him.
Mr Sinha went bankrupt which was only in August last year.