Simon Carswelllooks at the career of solicitor and developer Michael Lynn, who owns 105 properties personally or through his company
Like many professionals who work with property developers and builders, solicitor Michael Lynn saw business opportunities in property, particularly overseas property, and decided he wanted a slice of the action.
Originally from Co Mayo, Lynn was admitted as a solicitor in November 1994. He later started his own practice.
In the late 1990s he began specialising in litigation and property conveyancing, handling the legal work of property developers and builders in the buying, selling and developing of land.
His legal firm was based in Blanchardstown, west Dublin, but he later moved the firm to the Capel Buildings in Dublin 7, near the Four Courts, where it practised as Capel Law.
Lynn has been an investor in property for several years and became involved in property development through his company, Kendar Holdings, which developed apartments in Co Leitrim and offices in Co Cavan.
His first major overseas property venture was a holiday home development in Portugal in late 2003. As the demand among Irish investors for overseas holiday and investment properties grew, so too did Kendar and Lynn's property interests. He continued to run his legal practice.
On Wednesday, October 10th, the Law Society secured an order freezing Lynn's assets amid concerns that the clients' account at his law firm had been used for personal transactions and that there appeared to be "a free flow of funds" from the law firm's client bank account to Kendar's bank account.
The Law Society sent an accountant into Lynn's firm last month to investigate. She spent five days examining the books of account but failed to conclude her investigation, she told the High Court. She found "a minimum deficit" of €702,820 in the firm's clients account as at August 31st, 2007, but that the books were not up to date and she believed the actual deficit could be much higher. She said Lynn had allegedly drawn down loans of €26.371 million since January 2007 but had failed to provide documentation on the loans when requested.
The court heard yesterday that Lynn owned 105 properties either personally or through his firm, Proper T Capel. Of these, 35-40 properties were overseas, in nine countries including Slovakia, Bulgaria, China and Dubai. Lynn purchased 40 properties in the last year, all financed by loans.
The Law Society's accountant found that Lynn has many personal transactions through the client account, which is prohibited under Solicitors Accounts Regulations.
The accountant said the firm's books of accounts were "totally unreliable", that Lynn had been using bank drafts "which makes it quite difficult to trace transactions" and that bank drafts had been drawn on clients' account to finance personal transactions.
The Law Society's Regulation of Practice Committee reviewed the accountant's report and believed that it "disclosed acts of dishonesty on the part of the solicitor in relation to clients' monies".
The court heard yesterday that Lynn put his own money into the clients' account under different names. It has been alleged that he took out multiple mortgages on properties with several banks.
Following yesterday's hearing, Lynn cannot make a payment out of any bank account in his name or associated companies, nor can he sell any assets owned or controlled by him or his associated companies.
Lynn, who was in court yesterday and is the only solicitor in his firm, gave an undertaking to the president of the High Court, Mr Justice Richard Johnson, yesterday not to practise.
The Law Society said yesterday it was investigating the firm, that it was removing clients' files for safe keeping and that it would write to all clients to inform them of the firm's closure.
Lynn has to provide a list of properties owned by him or his company, Proper T Capel. The court heard yesterday that a meeting has been arranged for Friday with a syndicate of banks, including AIB and Bank of Ireland, to see what measures could be taken to ensure the orderly repayment of liabilities.
Counsel for Lynn said his client was prepared to co-operate fully and hoped that he would be able to meet the liabilities, if the properties were sold in "an orderly way", and not in "a fire sale".