A former HSBC executive has received a suspended jail sentence after defrauding Southeastern Railway of nearly £6,000 through a scam known as 'doughnutting'. Joseph Molloy, 53, pleaded guilty to fraud by false representation at Inner London Crown Court.
Molloy purchased tickets for the start and end of his journey but avoided paying for the middle section, allowing him to use ticket barriers while paying less. The fraud, committed over 11 months from October 2023, involved more than 740 journeys and saved him £5,911.
The court heard Molloy used fake names and addresses to obtain two smartcards, on which he uploaded tickets. He also applied a 50 per cent discount from Jobcentre Plus. Molloy travelled from his £2 million home in Orpington to London Bridge and then to Canary Wharf, where he worked.
Prosecutor Jack Furness described the fraud as 'sophisticated in planning and execution'. Molloy initially refused to comment but confessed when presented with evidence. His defence said he was under stress due to health issues and his mother's death, and that he had a 'distinguished career' as head of passive equity at HSBC Global Asset Management before retiring last year.
Recorder Alexander Stein noted Molloy was 'a man of some financial means' and had committed a 'persistent and serious offence'. However, because Molloy stopped the activity voluntarily and had strong mitigation, the judge suspended a ten-month jail sentence for 18 months. Molloy must also complete 80 hours of unpaid work, pay £5,000 compensation, and is banned from travelling on Southeastern Railway for 12 months.
