Britain's Financial Conduct Authority has banned former HSBC banker Joseph Molloy from the finance industry after he dodged £5,911, or about $7,800, in train fares. In a final notice dated Oct. 1, the FCA barred Molloy from performing any function in relation to any regulated activity carried on by an authorized person, exempt person or exempt professional firm. Between October 2023 and September 2024, Molloy set up two accounts with SE Trains Limited, the operator known as Southeastern, using false names, addresses and email accounts to acquire travel cards, and engaged in "donutting" on at least 740 journeys by paying only for short trips at the start and end while evading the fare in between. He pleaded guilty at Inner London Crown Court in January to fraud by false representation under the Fraud Act 2006 and on Feb. 17 was sentenced to 10 months in prison, suspended for 18 months, along with 80 hours of unpaid work, 10 rehabilitation activity days, a 12-month ban from the train operator, and orders to pay £5,000 in compensation to Southeastern, £150 in costs and a £187 victim surcharge. The judge called it "a sophisticated and determined fraud," saying Molloy was "clearly in a financial position to pay the fares" yet chose to evade them, and the FCA said his conviction demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities. Molloy did not refer the FCA's Aug. 3 decision notice to the Upper Tribunal within the 28 days allowed, and told the regulator he accepts he fell below the standards of behaviour expected by the Authority.
HSBC Holdings PLCFCA banned former HSBC banker Joseph Molloy from the finance industry over train fare fraud, a regulatory action involving an ex-HSBC employee.
Southeastern was defrauded of £5,911 in fares by Molloy, who was ordered to pay £5,000 compensation to the operator.
