'Hedge fund manager in ^42,550 train fare dodge' - ongoing discussion

[whole diary]

[Chris from Nailsea]

From the BBC^» (British Broadcasting Corporation - home page):

Hedge fund manager 'in ^42,550 train fare dodge'


The senior executive is thought to have avoided paying full fares for five years

A city executive is believed to have dodged paying ^42,550 in train fares by exploiting a loophole which meant he only paid a third of the journey cost.

The hedge fund manager from Stonegate, in East Sussex, who has not been named, had an Oyster^▸ (Smartcard system used by passengers on Transport for London services) Travelcard and regularly travelled to and from London.

Southeastern said he commuted from Stonegate to London Bridge, where he caught another train to Cannon Street.

His Oyster was only used at Cannon Street so he paid a maximum ^7.20 fare.

The rural station at Stonegate has no ticket barriers, so the man was able to avoid "tapping in" with his Oyster card, and only "tapped out" through the barriers once he reached Cannon Street.

He also managed to avoid ticket inspectors on the train, Southeastern said.

The then maximum fare of ^7.20 was incurred when a passenger "tapped out" through a barrier without having "tapped in", a Southeastern spokesman said.

The executive was eventually caught in November last year by a ticket inspector standing next to the barriers.

He paid back the ^42,550 in dodged fares, plus ^450 in legal costs, within three days as part of an out-of-court settlement.

Southeastern said it believed he had been dodging the fare for five years as his last annual season ticket from Stonegate expired in 2008 and within five days of being challenged he renewed his lapsed ticket.

The spokesman for the company said: "We recognise that this issue is important to customers who pay their way and expect the system to treat them with fairness by acting against people who don't buy tickets."

[Cynthia]

While this type of story makes me seeth, I suppose to the perpetrator's credit he did at least pay back what he owed, but it does make one wonder how widespread is this sneaky practice?  And to what cost to the TOCs^▸ (Train Operating Company) and the other passengers, whose increased fares probably have a percentage factored in to cover this sort of dishonesty.  Maybe the problem is a shortage of staff; I suppose the TOCs would say it's 'uneconomical' to man barriers.

[Chris from Nailsea]

Hmm. 

The executive was eventually caught in November last year by a ticket inspector standing next to the barriers.

[Electric train]

Out of Court settlement should have been a criminal prosecution for theft

[grahame]

... how widespread is this sneaky practice?  And to what cost to the TOCs^▸ (Train Operating Company) and the other passengers, ...

I'm not sure about this practice, but with a fare system and structure as complex as we have in the Uk, there is a very great deal of fare evasion.  Not only does it cost others who have to pay more, but it can also reduce passenger counts to the extent it distorts statistics upon which future service levels are decided ...

At both of the last two TransWilts Link meetings, one of the three top priorities to ask the train operator and council for is more thorough enforcement of fare collection.   And I'm delighted that FGW^▸ (First Great Western) under the new franchise have been recruiting additional revenue protection staff.  You can't totally blame the loss of fares on passengers who set out to cheat, though; for one thing, there are creating journeys and circumstances where there's no opportunity to pay, and for a second the system of fares can be so complex that not even the staff understand what's valid ...

[Chris from Nailsea]

Hmm, again.  

The executive ... paid back the ^42,550 in dodged fares, plus ^450 in legal costs, within three days as part of an out-of-court settlement.

Better that, perhaps, than the inordinate costs of a criminal court case - which could have resulted in possibly a lesser penalty?  

[John R]

I suspect the TOC^▸ (Train Operating Company) is somewhat embarrassed that he travelled for 5 years without an onboard ticket check finding him out. And if not, they should be.

I work in the financial services industry, and many years ago a member of staff was dismissed because he was convicted of fare dodging. The company's position was that its fiduciary insurance required it not to employ anyone convicted of any type of financial fraud. So I suspect the individual was highly likely to lose his job if it became public.

Still leaves a very bad taste in the mouth though. The fact that he agreed to pay ^40k back is clearly an admission of guilt, and he should have been prosecuted.

[Southern Stag]

Out of court settlements are very common for ticketing offences, just not usually involving this kind of money. It's in the TOC^▸ (Train Operating Company)'s interest to settle as they won't incur the costs in bringing the case to court and they'll also receive some compensation. If the prosecution is successful the punishment is normally by way of a fine, and the TOC won't receive that. They normally receive of compensation for the fare due, but to receive the full ^43,000 they would have to prove that he'd been evading the fare for the whole period, which would probably be difficult.

[Brucey]

it does make one wonder how widespread is this sneaky practice?

Very widespread.  Had he loaded a Zone 1 Travelcard to the Oyster^▸ (Smartcard system used by passengers on Transport for London services) card (or even just purchased a paper Travelcard), it is unlikely he would ever have been caught as these tickets do not require a touch in.

This is a common fraud committed by passengers of London Underground who travel across Central London without paying the Zone 1 premium, taking advantage of the lack of ticket checks on the train.  I saw a few people being pulled up during a revenue sting inside Oxford Circus station last year, where tickets and Oysters were being checked as passengers walked through the interchange tunnels.

[Btline]

10/10 for effort. It's about time greedy train companies got a taste of their own medicine.

The only crime here is the extortionate fare for a commute.

[Chris from Nailsea]

Hmm.  Careful, Btline: you're on the verge of condoning fare evasion there.

[Chris from Nailsea]

Further coverage of this story, from the Telegraph:

City boss dodged ^42,000 in train fares on commute

Unnamed fund manager paid nothing for his 82-minute commute since 2008

Train bosses have come under fire for not prosecuting a wealthy hedge fund manager who was described as the ^biggest fare dodger in railway history^, evading more than ^42,000 in train tickets.

The City executive is believed to have dodged the fare for the 82-minute commute between the Sussex village of Stonegate and central London for five years. He exploited a flaw that allowed him to go through barriers at Cannon Street station in London by ^tapping out^ with an Oyster^▸ (Smartcard system used by passengers on Transport for London services) travelcard.

After finally being caught by a ticket inspector, the executive was able to pay ^42,550 in dodged fares and ^450 in legal costs within three days of being asked to pay up as part of an out-of-court settlement.

Train company Southeastern has refused to name the fund manager. Manuel Cortes, leader of the TSSA^» (Transport Salaried Staffs' Association - about) rail union, said: ^It is not only extraordinary that the biggest fare dodger in railway history got away with it for so long, but has also now escaped criminal prosecution as well.^

A single fare from Stonegate to London costs ^21.50 and an annual season ticket ^4,548. The executive is believed to have bought neither between 2008 and the end of last year. Although he never admitted to this, he offered to settle the matter out of court.

It is thought he disembarked at London Bridge and caught a service to Cannon Street. At Cannon Street, he used an Oyster card to pass through, paying the maximum ^7.20.

A Southeastern spokesman said: ^All customers have the option to settle out of court and in this case he chose to pay the settlement fee that we put to him.^

[Chris from Nailsea]

... and, from the Mail Online:

High-flying fund manager spends five years dodging rail fares... then coughs up ^43,000 after being caught

Each day, commuter avoided ^49 fare from Stonegate, East Sussex
Travelled to London, would 'tap out' Oyster^▸ (Smartcard system used by passengers on Transport for London services) once and only be charged ^7.20
He would get off at London Bridge and catch service Cannon Street
However his scam was exposed and he paid the bill in a settlement
An annual ticket would have cost ^4,548, or ^22,740 over five years
He was instead charged the full daily fare totalling ^42,550 - plus legal costs

A high-flying executive avoided paying almost ^43,000 in train tickets for his daily commute into London - and paid back the dodged fares in just three days after being caught.

Over five years, the hedge fund manager dodged the ^24.50-each-way fare while travelling from his home in the sought-after village of Stonegate, East Sussex to his place of work in the city.

The unnamed man, who is believed to be the biggest fare dodger in history, exploited a loophole that allowed him to pay only a third of the actual cost of his 1hour 22minute journey.

He caught the commuter train from Stonegate - a rural station with no barriers or ticket machine and only a part-time ticket office - without purchasing a fare.

Once in London, the executive was then able to pass through the barriers at Cannon Street by simply 'tapping out' with an Oyster Travelcard paying just ^7.20.

But his scam was finally exposed by a ticket inspector and, in an out-of-court settlement, he paid Southeastern trains back the ^42,550 in dodged fares and ^450 legal cost within three days.

The cost of a standard-class single fare from Stonegate - where the average home cost half a million pounds - to London is ^24.50 while an annual season ticket costs ^4,548 .

According to a report in the Sunday Times, the senior executive is believed to have travelled into London without buying any ticket and avoiding detection from 2008 until the end of last year.

He was able to get off his train at London Bridge and cross a platform to catch a service to Cannon Street - again avoiding having to go through any barriers.

At Cannon Street, he used an Oyster card to exit the barriers, paying the then maximum ^7.20 fare incurred when a passenger taps out without having tapped in.

But on November 25 last year a ticket inspector standing next to the barriers spotted he had paid ^7.20 and not the ^2.30 for a single ticket.

After being challenged, the passenger later admitted to dodging the correct fare on five journeys between London Bridge and Cannon Street.

However, suspicious investigators for Southeastern discovered that the man had for a number of years up until 2008 been purchasing an annual ticket from Stonegate.

And within five days of being caught out at Cannon Street, the executive renewed his season ticket, leading Southeastern to believe he had been dodging the fare for his commute for five years.

Despite never admitting to this, the executive offered to settle the matter out of court and paid up within three days of being notified by the train operator the total owed in dodged tickets.

Southeastern, who has not named the man, said all passengers have the option to avoid prosecution and settle out of court.

The train company told the Sunday Times that the executive wanted to protect his identity because he was concerned about the impact it would have on his job.

A spokesperson added: 'All customers have the option to settle out of court and in this case he chose to pay the settlement fee that we put to him.

'The customer wanted to protect his identity and did not admit to evading fares for five years at any point during the process.' However, crtiics have questioned why the fare dodging executive was allowed to escape being prosecuted and remain anonymous.

Manuel Cortes, leader of the TSSA^» (Transport Salaried Staffs' Association - about) rail union, said in the report: 'It is not only extraordinary that the biggest fare dodger in railway history got away with it for so long, but has also now escaped criminal prosecution as well.'

[LiskeardRich]

So was it ^21.50 or ^24.50 single?
Either way for a 50 mile trip each way, we are looking at around 50p a mile, which is extortionate in my view.
The government want people out of cars onto public transport, yet the cost is uncompetitive,how can public transport be more expensive than a single person driving.

[Brucey]

Either way for a 50 mile trip each way, we are looking at around 50p a mile, which is extortionate in my view.
The government want people out of cars onto public transport, yet the cost is uncompetitive,how can public transport be more expensive than a single person driving.

Sadly this is fairly standard during the peak in the South East.  E.g. Havant to London is 47p per mile for an anytime single.

You are absolutely right about the cost of driving.  It doesn't seem right that a more fuel efficient form of transport is actually costing the end user more to run.