The Financial Conduct Authority banned Weaving Capital (UK) Ltd. Founder Magnus Peterson from working in the financial industry as part of a closure in one of the biggest scandals in the country.

Bloomberg reported that Peterson was sentenced in January to 13 years in prison for committing a series of fraud offenses that costs clients $536 million. To make matters worse for him, the FCA prohibits him from taking up any position involving any regulated activities. Before Peterson, this same ruling was given on October 16 against Kweku Adoboli, another trader who caused a $2.3 billion loss at the UBS Group AG.

According to Reuters, FCA enforcement and market oversight Mark Steward 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."

Weavering Macro Fund was registered in the Cayman Islands. It was managing about $640 million worth of funds in 2008, but it collapsed in 2009 after it failed to pay back it investors who were demanding their money back after the financial crisis hit in 2008. The true value of the firm was only brought to light after the Lehman Brothers collapsed. According to FCA, Peterson rewarded himself with 5.8 million pounds with investors' money from 2005 to 2009.

In a report by Investment Week, the  Serious Fraud Office investigated Peterson and convicted the ex-hedge fund boss after 12 weeks of trial, after being found guilty of committing those crimes between july 31, 2003 to March 31, 2009.

When Peterson's Macro Fund collapsed, the majority of its assets were discovered to have reached $600 million worth of interest rate swaps with Weavering Capital fund. Those funds where actually worthless. Those swaps were created to attract more investors and allow Peterson to rake in millions worth of money as his performance fees, according to the SFO.