Courts / Dublin / Report
Bank manager gets two years for €2.7m bogus loan scheme
Summary
Patrick Challoner, a former AIB manager aged 54, was sentenced to three years' imprisonment with the final 12 months suspended for two years after a 16‑year scheme that saw €2.7 million stolen from the bank. He created bogus loans and investment accounts, taking money from customers who believed they were authorising investments that were never made. The scheme involved over 100 charges and thousands of transactions, with the bank suffering a total loss of €3.2 million. Challoner did not personally profit; he repaid €60,000 and expressed remorse. He pleaded guilty to five theft charges and one deception charge, and the court noted his early guilty plea, cooperation, and good character as mitigating factors. The judge highlighted the seriousness, amount involved, duration, and repetitive nature of the offence as aggravating factors. The case was heard in the Dublin Circuit Criminal Court.
Who, what, where, when and why
What: Report matter: Bank manager gets two years for €2.7m bogus loan scheme. 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
- 2024-01-11 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
Convicted Person
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: Photo: Collins) A bank manager who stole €2.7 million from AIB over a 16-year period by creating a bogus loan and investment scheme has been jailed for two years. She sentenced Challoner to three years in prison and suspended the final 12 months for two years.
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