Ex-HSBC executive banned after dodging nearly £6,000 in train fares

A former HSBC executive has been banned from working in financial services after dodging nearly £6,000 in train fares.

Joseph Molloy, 53, used a train fare evasion tactic known as “doughnutting” to reduce ticket prices across at least 740 journeys over 11 months while travelling on Southeastern Railway.

The fraudster, who was head of passive equity at HSBC Asset Management but has now retired, would use fake names and email addresses to purchase tickets between stations at the beginning and end of his journey, but not all of those in between, when he would go from his home in Orpington, south London, to Canary Wharf.

He also obtained a Jobcentre Plus discount for unemployed people, allowing him to apply a 50 per cent discount to ticket prices.

Molloy pleaded guilty to fraud by false representation at Inner London Crown Court in January and was sentenced to 10 months in prison, suspended for 18 months. He was also banned from travelling on Southeastern Railway for a year.

He was ordered to carry out 80 hours of unpaid work, undertake 10 rehabilitation activity days, and pay costs of £150, a victim surcharge of £187, and compensation of £5,000 to Southeastern.

The Financial Conduct Authority said on Thursday it was banning Molloy from working in any regulated financial services activity for “a clear and serious lack of honesty and integrity”.

“It appears to the Authority that Mr Molloy is not a fit and proper person to perform any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm,” the watchdog said.

“Mr Molloy’s conviction demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities.”

He was given a lifetime prohibition order.

At the time of sentencing, the judge described the offending as a “sophisticated and determined fraud” and said Molloy was “clearly in a financial position to pay the fares”.

“You decided to evade them and that causes a loss to the whole of society,” he added.

However, the judge also took into account several mitigating factors, including that he was experiencing difficult personal circumstances at the time of his offending, that he ceased the activity of his own volition, and he had shown genuine remorse.