Wealthy HSBC banker is banned from the City for dodging £5,900 in train fares

A former HSBC executive has been banned from working in financial services after being convicted of fraud for evading thousands of pounds in train fares.

The Financial Conduct Authority (FCA) said Joseph Molloy, 53, had been prohibited from performing any regulated activity after a court convicted him of fare fraud earlier this year.

The regulator said the conviction demonstrated that he "lacks honesty and integrity", standards required of those working in the financial services industry, Mail Online reports.

Molloy, who worked in asset management, admitted fraud by false representation in February after using a ticketing scam known as "doughnutting" to reduce the cost of his commute between Orpington and Canary Wharf.

The practice involves purchasing tickets covering the beginning and end of a journey while avoiding payment for a section in the middle.

Prosecutors said the scheme was carried out at least 740 times between October 2023 and September 2024, saving Molloy £5,911 in fares.

The court heard he also obtained discounted rail fares intended for Jobcentre Plus claimants by using false names and addresses to acquire smartcards.

Molloy, who was formerly head of passive equity at HSBC Asset Management, received a 10-month prison sentence suspended for 18 months. He was also ordered to complete 80 hours of unpaid work, pay £5,000 compensation and was banned from using Southeastern services for a year.

Sentencing, Recorder Alexander Stein described the offending as "persistent and serious". While the judge said the level of planning involved warranted an immediate custodial sentence, he suspended the term in light of substantial mitigation.

During the case, Molloy's barrister said he had been dealing with personal difficulties, including health issues and the death of his mother.

In announcing the prohibition order, the FCA said Molloy had accepted that his conduct fell below the standards expected by the regulator and had not challenged the decision.

The case highlights the FCA's approach to misconduct outside the workplace, with the regulator maintaining that criminal dishonesty can call into question an individual's fitness to work in regulated financial services roles.

Fare evasion is estimated to cost Britain's railways hundreds of millions of pounds each year, prompting operators to increase enforcement efforts and explore new technologies to detect ticketing fraud.