Solicitor Michael Lynn, whose practice has been shut down by the Law Society, has arranged with his solicitor to have a forensic accountant assist in "clarifying" his accounts, the High Court was told today.
However, it will be at least two more weeks before the full extent of the solicitor's liabilities become clear as Mr Lynn has been given that time to complete an affidavit containing that information and a list of properties.
The liabilities are estimated to be at least €26 million and as much as €50 million.
Dublin-based Mr Lynn, practising as Capel Law, is alleged to have taken out multiple mortgages on several properties with several major Irish banks.
His accounts have been frozen, he has been ordered to disclose a full list of his accounts and assets and has agreed not to practise.
The Law Society's Regulation of Practice Committee expressed the view last week that an investigation into Mr Lynn's practice "disclosed acts of dishonesty" by Mr Lynn in relation to client monies.
Representatives of Bank of Scotland Ireland Ltd, IIB Bank, First Active, Allied Irish Bank and ACC, were in court today when the proceedings by the Law Society against Mr Lynn again came before the court.
Mr Justice Johnson said all of the banks should give the lists of the properties involved to the Law Society and he directed that the applications with a view to registering mortgages be heard on Thursday.
The Law Society brought its proceedings against Mr Lynn under the Solicitors Acts following a report of an authorised officer appointed on September 20th last to investigate Mr Lynn's practice.
The officer reported a minimum accounts deficit on August 31st 2007 of €702,830 but said she believed the actual deficit on clients account "is much more than this". The officer also reported that Mr Lynn had apparently drawn down loans since January 2007 which totalled €26.37 million.
She said the files relating to the various different loans had been requested but Mr Lynn had failed to provide the documents. His books of account were "totally unreliable".
The officer said it appeared loans were drawn down and lodged to Mr Lynn's client account with monies withdrawn within days and transferred abroad to purchase properties or lodged to Mr Lynn's personal bank account.
The officer said many of the properties are registered in the name of another company, Property T Capel Ltd, of which Mr Lynn and his wife Brid Murphy are shareholders and directors.
Mr Lynn also operated under the name of Overseas Property Law, the vehicle he used when he got inquiries from people interested in purchasing property abroad, the officer said.