LONDON, Oct 26 (Reuters) - Britain's Financial Conduct Authority on Monday banned the former head of Weavering hedge fund Magnus Michael Peterson from working in the financial services industry.
Peterson was jailed for 13 years in January for fraud offences which caused investors in the Weavering Macro Fixed Income Fund net losses of around $536 million, the FCA said.
"Peterson defrauded investors who should have been able to trust him. Over a prolonged period he purposely used investors' money to prop up his business, and then lied in order to cover up his deception," said Mark Steward, the FCA's director of enforcement and market oversight.
The Cayman Islands-registered Weavering Macro Fund, which had around $640 million under management in 2008, collapsed in 2009 when it was unable to pay investors wanting their money back after the 2008 financial crisis.
Peterson had "rewarded himself handsomely from investors' monies", to the value of 5.8 million pounds between 2005 and 2009, the FCA said.
Peterson was found guilty of eight counts of fraud, forgery, false accounting and fraudulent trading following an investigation by Britain's Serious Fraud Office. (Reporting by Lisa Barrington, editing by David Evans)