Ex-hedge fund manager banned for fare dodging

A former BlackRock investment manager has become only the second person to be banned for personal dishonesty by Britain’s financial watchdog after he was caught dodging fares worth £43,000 (€54,000) on his daily commute into London.

When the story broke in April, British newspapers quoted commuters angry that an anonymous hedge fund manger dubbed the “biggest fare dodger in history” was allowed to settle quietly with the railway company without being prosecuted.

The story led to an investigation by the Financial Conduct Authority and Jonathan Paul Burrows, a senior figure at the world’s largest investment manager, was later unmasked by a newspaper.

The authority’s action against Burrows is a sign of how personal integrity is now seen as crucial as the financial sector seeks to restore its reputation after its worst crisis in decades, lawyers said. Burrows was a managing director at BlackRock Asset Management Investor Services and on November 19, 2013, he was stopped by ticket inspectors at the exit gates of London’s Cannon Street station, the authority said yesterday.

Burrows was found to have failed to buy a valid ticket for his journey from Stonegate, East Sussex, the FCA said. The high-flyer admitted to evading fares on a number of occasions.

“Burrows held a senior position within the financial services industry. His conduct fell short of the standards we expect,” said the authority’s enforcement director Tracey McDermott. “Approved persons must act with honesty and integrity at all times and, where they do not, we will take action.”

Burrows said he had always recognised what he did was foolish. In March 2014 he paid a sum of money to Southeastern Trains that was significantly more than the value of the fares he had evaded, and British Transport Police will not be pursuing a case against him, Burrows added. Southeastern Trains calculated Burrows dodged £43,000 in fares, probably over five years.

“While I respect the FCA’s decision today, I also regret it, coming as it did after a 20-year career in the City that was without blemish,” Burrows said.