HSBC Banker Banned From the City of London After Racking Up £5,900 in Unpaid Fares

A former HSBC executive has been barred from carrying out regulated financial services work in London after admitting to repeatedly dodging train fares of nearly £6,000 over 11 months.

Joseph Molloy, 53, was prohibited from performing any regulated activity by the Financial Conduct Authority (FCA) after his conviction for fraud by false representation. The regulator said his conviction demonstrated that he lacked the honesty and integrity expected of someone working in financial services.

Molloy's fare-dodging involved his daily commute between Orpington and Canary Wharf, with the former banker using a ticketing practice known as 'doughnutting' to reduce the cost of his journeys.

What Is the 'Doughnutting' Scheme?

Molloy admitted the offence in February after using the ticketing method on Southeastern Services. 'Doughnutting' involves purchasing tickets that cover the beginning and end of a journey while leaving part of the trip unpaid. The tactic can reduce the price of a journey by exploiting gaps between the tickets purchased.

According to the court case, Molloy used the method at least 740 times between October 2023 and September 2024.

Over those 11 months, the practice saved him £5,911 in train fares, according to a media outlet.

FCA Says Conviction Showed Lack of Honesty

The consequences for Molloy extended beyond the railway network. The FCA prohibited Molloy from performing any regulated activity, effectively preventing him from working in roles requiring regulatory authorisation within the UK's financial services industry.

The FCA said the conviction demonstrated that Molloy 'lacks honesty and integrity.' He accepted that his behaviour fell below the standards expected by the regulator and did not challenge the FCA's decision.

He was sentenced at Inner London Crown Court after admitting the fraud and received a 10-month prison sentence, suspended for 18 months, which means that he did not immediately serve the sentence in prison.

He was also ordered to complete 80 hours of unpaid work and pay £5,000 in compensation. Separately, Molloy was banned from using Southeastern services for one year.

The railway ban is distinct from the FCA's prohibition. While the court imposed restrictions connected to his criminal conviction and use of Southeastern services, the FCA action affects his ability to perform regulated financial services activities.

Molloy's case turned a train-fare fraud into a much broader professional setback, given the criminal conviction, a suspended prison sentence, unpaid work, £5,000 in compensation, a one-year Southeastern ban, and an FCA prohibition from regulated activity.

Other City Professionals Have Faced Career Consequences

Molloy's case is not the first time a senior financial professional has faced regulatory consequences over railway fare evasion.

In 2014, the FCA banned former BlackRock Asset Management managing director Jonathan Burrows from performing any function in relation to regulated activities after he admitted repeatedly avoiding fares on his commute from Stonegate in East Sussex to London Cannon Street.

Burrows had used an Oyster card to pay £7.20 instead of the £21.50 fare for his full journey and admitted to the FCA that he knew he was breaking the law. The regulator had said his conduct fell short of the honesty expected of an approved person.

A similar case involved barrister Peter Barnett, who was convicted of six charges of fraud by false representation after avoiding the correct fare on hundreds of journeys between Oxfordshire and London.

Barnett had claimed to have travelled from Wembley rather than Haddenham & Thame Parkway, and the court found that he had failed to pay the correct fare on 655 days between 2012 and 2014. He received a 16-week prison sentence suspended for 12 months, while the Bar Standards Board later disbarred him, saying dishonest conduct was incompatible with membership of the profession.