A former HSBC banker has been banned from working in financial services by the UK watchdog after being convicted of fraud over a “doughnutting” scam he devised to dodge almost £6,000 of train fares.
The Financial Conduct Authority said it banned Joseph Molloy from working in any regulated financial services activity because his conviction “shows he lacks honesty and integrity” and he was not fit and proper to carry out such roles. Molloy, who was head of passive equity at HSBC Asset Management until he retired last year, pleaded guilty to fraud by false representation this year after being caught using fake names and addresses to buy smart cards, which he used to dodge fares at least 740 times.
The 53-year-old devised a “doughnutting” scheme to buy tickets for short trips at the start and end of the journey from his home in Orpington, south London, to HSBC’s office in Canary Wharf. The scam meant he avoided paying for a “hole” in the middle of his commute. The former banker also obtained a Jobcentre Plus discount, for which only unemployed people or those seeking work are eligible, to get 50 per cent off ticket prices.
The FCA’s lifetime ban for Molloy, who evaded £5,911 of fares, underlines the watchdog’s determination to crack down on examples of unethical conduct or dishonesty in the City of London. Last month, it broadened its powers to tackle more types of non-financial misconduct such as harassment and bullying. The move mirrors a similar ban the FCA gave in 2014 to Jonathan Burrows, a former managing director at Black Rock Asset Management, who paid £43,000 to settle allegations of fare dodging over a period of several years.
Source: Financial Times Companies · Summarized by HeadlinesBriefing