Bankers, avoid train fare evasion on your commute—it may bar you from the financial industry

A former HSBC executive discovered that a single train ticket violation can end a career in finance. Joseph Molloy was prohibited on Thursday by the UK’s Financial Conduct Authority from performing regulated financial services work after a criminal conviction for fare evasion. Molloy, 53, who until his retirement last year served as head of passive equity at HSBC Asset Management, employed a tactic called ‘donutting’ for trips from his suburban London home to the bank’s city office. Rather than purchasing a ticket covering the entire journey, he bought tickets for short segments at each end, leaving an unpaid ‘gap’ in the middle. Prosecutors stated he used fake names and addresses to secure multiple travel cards and wrongly claimed a travel discount meant for unemployed job seekers. The court was told the scheme was executed 740 times over 11 months, evading £5,911, or about $7,900, in fares. In February, Inner London Crown Court sentenced Molloy to 10 months’ imprisonment, suspended for 18 months. He received a one-year ban from the railway operator, was ordered to complete 80 hours of community service and pay £5,000, approximately $6,605 in compensation, along with costs and a victim surcharge. During the trial, Molloy’s lawyer said he was ‘going through a pretty difficult period when he did this. He cannot explain why he did this.’ It is a fraud that was discreet in nature, committed against no individual, and no one from the public was made to suffer, and a large private company was the victim,’ he added. This week, the Financial Conduct Authority issued what amounts to a lifetime prohibition from the industry. FCA-regulated firms cannot employ Molloy in a regulated position unless the regulator later removes the ban. The agency stated the conviction demonstrated a ‘clear and serious’ lack of honesty and integrity, meaning he was not ‘fit and proper’ for regulated work. In the US, the Financial Industry Regulatory Authority, or FINRA, supervises brokerage firms and the brokers who work for them. It can permanently bar brokers from the industry, typically for misconduct involving clients or securities. The FCA’s authority is broader: it can bar someone from working in regulated finance if it determines they are not fit and proper, including due to dishonesty outside the office. The takeaway for bankers: a fraud committed off the clock can still undermine professional trustworthiness.