Britain's financial regulator has banned former HSBC banker Joseph Molloy from the financial industry after he committed a train-fare fraud that cost railway operator Southeastern £5,911, or about $7,800.

The Financial Conduct Authority (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,” according to the regulator’s final notice, dated Oct. 1.

Between October 2023 and September 2024, Molloy created two accounts with SE Trains Limited, the operator known as Southeastern, using false names, addresses and email accounts. He used the accounts to obtain travel cards.

Molloy carried out a practice known as “donutting,” in which a passenger pays for two short journeys at the beginning and end of a trip—between home and work, in his case—while leaving the section in between unpaid. He used the method on at least 740 journeys.

In January, Molloy pleaded guilty at Inner London Crown Court to fraud by false representation under the Fraud Act 2006. On Feb. 17, he was sentenced to 10 months in prison, suspended for 18 months.

The court also barred him from Southeastern for 12 months, ordered him to complete 80 hours of unpaid work and 10 rehabilitation activity days, and required him to pay £5,000 in compensation to Southeastern, £150 in costs and a £187 victim surcharge.

At sentencing, the judge described the conduct as “a sophisticated and determined fraud,” according to the FCA notice. The judge said Molloy was “clearly in a financial position to pay the fares, you decided to evade them and that causes a loss to the whole of society.”

“In my judgement, this is a high culpability,” the judge said. “It is sophisticated, with considerable planning, conducted over a period of almost 12 months.”

The judge also considered mitigating factors, including Molloy’s difficult personal circumstances, his decision to stop voluntarily and his genuine remorse. The FCA notice says those factors influenced the length of the prison sentence and the decision to suspend it.

Fare evasion costs London nearly $172 million

The fare fraud occurred while Molloy held certified functions in the financial industry. The FCA can prohibit people who do not appear to be “a fit and proper person” to work in regulated finance. The regulator lists honesty, integrity and reputation among its key considerations and gives “particular consideration” to convictions involving dishonesty and fraud.

“Mr Molloy’s conviction demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities,” the FCA notice says.

The FCA directed Fortune to the notice when asked for comment. HSBC did not respond to Fortune’s requests for comment. The company is listed by Fortune here.

Molloy’s fraud involved Southeastern, a National Rail operator, rather than the London Underground. Fare evasion nevertheless imposes significant costs on London’s transit system. According to the London Assembly, Transport for London (TfL) estimated that 3.9% of journeys across its network went unpaid in 2023/24, representing a revenue loss of more than £130 million, or $171.9 million.

TfL now puts the unpaid-journey rate at 3.5% and aims to reduce it to 1.5% or less by 2030/31. On the Tube alone, the Centre for Government Reform found an evasion rate of 5.03% during the first three quarters of 2025-26, the Telegraph reported, resulting in a cost of £141 million. The figures were also reported by On London and The Telegraph.

The FCA issued Molloy a decision notice on Aug. 3. He did not refer the matter to the Upper Tribunal within the 28-day period allowed. According to the notice, he also told the regulator that he “accepts that he fell below the standards of behaviour expected by the Authority.”

Generative AI was used for research assistance and/or transcription of this article. The reporter independently reported and verified the factual claims, and a human editor reviewed the article before publication.

This story was originally featured on Fortune.com.