Joseph Molloy banned from financial services after train fare fraud

Joseph Molloy, a 53-year-old former head of passive equity at HSBC Asset Management, has been banned from working in regulated financial services by the Financial Conduct Authority (FCA). The ban follows his conviction for fraud related to evading approximately £5,911 in train fares.

Molloy utilized a method known as ‘doughnutting,’ which involves purchasing tickets for the start and end of a journey but leaving the middle section unpaid. Prosecutors stated the scheme was carried out at least 740 times between October 2023 and September 2024. He also used false names and addresses to obtain discounted rail fares intended for unemployment claimants.

In February, an Inner London Crown Court handed Molloy a 10-month prison sentence, suspended for 18 months. He was also ordered to complete 80 hours of unpaid work and pay £5,000 in compensation. The FCA issued the prohibition order because his conduct demonstrated a lack of ‘honesty and integrity,’ which are essential standards for professionals in the financial industry.