Former solicitor Michael Lynn is currently on trial, accused of stealing approximately €27 million from several financial institutions. The prosecution alleges that between October 2006 and April 2007, Lynn acquired multiple mortgages on the same properties without the knowledge of the banks involved. These banks include Bank of Ireland and Bank of Scotland Ireland. Lynn, however, denies all 21 counts of theft.
The defense led by Mark Lynam SC, suggests that Irish Nationwide Building Society chairman Michael Fingleton introduced Lynn to Bank of Scotland Ireland and served as his “personal banker”. They argue that when Fingleton was unavailable due to vacation, senior staff at Bank of Scotland Ireland were contacted regarding loan approval.
Tom Brennan of Bank of Scotland Ireland testified about a failed mortgage application with Lynn in April 2006 and a subsequent proposal involving offices at Capel Street and 10 residential properties. In January 2007, an offer letter for €3.5 million was issued to Proper T Capital Ltd, a company directed by Lynn and his wife Brid Murphy. Brennan confirmed that he was unaware that Lynn sought finance from other institutions for these properties and confirmed the bank had the first legal charge over nine out of ten properties.
However, Brennan refuted the defense’s claim that Fingleton acted as Lynn’s “personal banker”, facilitating contact with senior staff when he couldn’t approve a loan due to vacation.
Nicholas Robert Hamilton from the National Irish Bank also testified, stating that their bank approved loans for Lynn’s company Michael Lynn and Co Solicitors to purchase property in Dublin, not abroad. He denied knowledge about any secret deal between Lynn and the bank to use funds abroad.
Arthur King from ICS Building Society confirmed they issued an offer letter for €3.5 million to Lynn after assessing his application but was unaware of any arrangement where Lynn would rescue the bank in case a loan taken out by a third party went wrong. The offer letter required a First Legal Charge (FLC) on the properties.
Fiona McAleenan, mentioned in the document related to the mortgage offer, denied signing it. The bank also received trading accounts for Kendra Holdings and Michael Lynn and Co Solicitors as part of Lynn’s application. The defense suggested that the bank could sue the solicitors, who would have professional indemnity insurance in place if something went wrong. However, King denied this claim.
In December 2006, a cheque for €2.74 million was issued by the Bank of Ireland to Michael Lynn and Co Solicitors. Brennan confirmed he was aware of the publicity surrounding Lynn in October 2007. During a meeting at that time, Lynn claimed it was a “misunderstanding”.
The trial continues under Judge Martin Nolan and a jury.
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Source: Investing.com
