Courts / Dublin / Report
Bank manager didn't benefit from €2.7m bogus loan scheme, court hears
Summary
Patrick Challoner, a former AIB bank manager aged 54, was found by the Dublin Circuit Criminal Court to have carried out a €2.7 million fraud over 16 years by creating bogus loan and investment schemes. He did not personally profit from the scheme, which involved taking money from customers who believed they were authorising investment accounts that were never established, and then using those funds to create fake loans for other customers. The scheme included 44 fictitious loans, 22 customers whose funds were misappropriated, and €900,000 given to 33 customers without paperwork. The bank suffered a total loss of €3.2 million, including reimbursements and audit costs. Challoner pleaded guilty to five theft charges and one deception charge, and was remanded on continuing bail pending sentencing on 27 November. He has since left the bank and is now working as a pizza delivery person.
Who, what, where, when and why
What: Report matter: Bank manager didn't benefit from €2.7m bogus loan scheme, court hears. Charges or matters: five sample charges of theft from Allied Irish Bank, Artane branch, on dates between August 2002 and February 2011 and one charge of deception, in that he fraudulently induced a named person to authorise a transfer of €300,000 from their bank account on December 2, 2016. Procedural stage: sentence
When:
- August 2002 Other
- February 2011 Hearing Or Sentence
- December 2, 2016 Hearing Or Sentence
- November 27 Adjournment
- 2023-11-01 Publication
Why: The court heard it was effectively a scheme that lasted 16 years and involved Challoner transferring funds from one customer account to another in order to "fill the holes" of the various accounts. Court evidence reported by CNI
Case subjects
Defendant
Charges: five sample charges of theft from Allied Irish Bank, Artane branch, on dates between August 2002 and February 2011 and one charge of deception, in that he fraudulently induced a named person to authorise a transfer of €300,000 from their bank account on December 2, 2016 (Admitted)
Plea: Guilty
Outcome: He accepted a suggestion from counsel that Challoner "was trying to meet these demands [of the customers] rather than line his own pockets" Judge Elma Sheahan said she needed time to consider the various reports and testimonials before the court and adjourned the case to November 27 next for sentence.; He accepted a suggestion from counsel that Challoner "was trying to meet these demands [of the customers] rather than line his own pockets" Judge Elma Sheahan said she needed time to consider the various reports and testimonials before the court and adjourned the case to November 27 next for sentence.
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