Lynn fined €2m over fraud, theft and forgery
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FUGITIVE solicitor Michael Lynn faces being struck off and fined €2m after ruthlessly abusing the legal system for his own "fraudulent advantage".
The solicitors' disciplinary tribunal, an independent body which investigates complaints against solicitors, recommended yesterday that Lynn -- who owes more than €80m to several banks -- be struck off without delay.
The tribunal made its recommendation, along with the unprecedented fine, after hearing evidence of Lynn's widespread fraud, forgeries and theft from client accounts, including that of Anne Jordan, his sister.
Lynn was found guilty of 57 charges of professional misconduct after the Law Society investigated just two of his property transactions.
He used an elaborate system of bank drafts to thwart an audit trail of his client accounts and deliberately misled the Law Society investigation.
Tribunal chairman Frank Daly said Lynn had behaved in a "disgraceful" manner and did not deserve to be a member of the legal profession.
The tribunal, whose findings are expected to be rubberstamped by the High Court when they are brought there by the Law Society, also recommended that the papers in the case should be sent to the Director of Public Prosecutions.
"Every system is open to abuse and today's case shows how one individual can ruthlessly abuse the system to his own fraudulent advantage," said Mr Daly.
He said public perception and confidence in the profession would be seriously eroded if he were not struck off.
Lynn used client accounts in his legal practice for property deals to such an extent that he "appeared to be his own biggest client".
The tribunal found that Mr Lynn, who was not present or legally represented at yesterday's hearing, had given multiple undertakings on numerous properties, including Glenlion, the €5.5m Howth property he purchased as his personal home, to various banks.
Lynn also drew down some €26m in bank loans between January and August 2007. The first complaint by a bank was filed in April last year, triggering the investigation which resulted in his practice being shut down.
At the tribunal, Shane Murphy, for the Law Society said Mr Lynn had used multiple undertakings as "a regular and systemic practice".
He also said that Lynn had forged documents and used "elaborate arrangements" to deceive the Law Society.
For the purchase of his former home of Glenlion in Howth, Mr Lynn had raised €11.7m in loans through undertakings given to Bank of Scotland Ireland, ACC Bank and Irish Nationwide. He also drew millions from client accounts at his practice for the house.
Evidence
However, Lynn had only used €5.5m to pay for the house. There was no evidence that one loan of €4.125m from Irish Nationwide was used towards the purchase of the property.
The tribunal heard that this money appeared to have been used for payments to Lynn's property company, Kendar, and the purchase of property in Shanghai.
The other property deal outlined concerned the purchase of lands at Derockstown, Co Meath by Peter and Josephine Duffy. Lynn raised loans through undertakings with AIB, IIB Homeloans and First Active.
These multiple loans, totalling over €7m, were secured on the land. Some €3m of this money was paid to Kendar holdings or other associated companies.
The tribunal also heard how close Lynn's legal and property interest operated. Law Society investigating accountant Mary Devereux said that when she was examining the accounts at Lynn's Capel Law, which was housed in the same building as his Kendar development company, there was "a door that was unlocked which couldn't be locked".
The tribunal's recommendations will be sent forward to the President of the High Court.
- Fiach Kelly
