Permanent TSB and Bank of Scotland (Ireland) are seeking to recover about €10 million each from solicitor Michael Lynn in legal actions that bring his known liabilities to more than €40 million.
Through its parent, Irish Life & Permanent, Permanent TSB is seeking to recover as much as €10.6 million from Mr Lynn and one of his former employees.
The bank has issued one plenary summons in respect of Mr Lynn and his company Proper T Capel. It has issued another plenary summons against Michael Lynn & Co, Capel Law, and Mr Lynn's former employee, Fiona McAleenan.
"Irish Life & Permanent has issued proceedings to recover just over €10 million, which was secured by solicitor's undertakings, in respect of 27 different properties," a spokesman said.
Ms McAleenan has said she was never knowingly involved in any wrongful acts and resigned from Mr Lynn's practice in September. Asked about the Irish Life & Permanent action, her solicitor Claire Callanan said: "We understand that proceedings have issued. We do not know the detail of same."
Ms Callanan added: "Ms McAleenan was furnished with two undertakings by TSB, on which her name had been signed. Ms McAleenan did not sign the undertakings. It is not her signature and this has already been advised to Permanent TSB."
Sources close to Bank of Scotland (Ireland) said Mr Lynn owed the bank some €10 million, although some of its loans were secured against the assets of Proper T Capel. Bank of Scotland (Ireland) and Anglo Irish Bank have already appointed a receiver to some of Lynn's assets.
However, Bank of Scotland (Ireland) is concerned that it also provided loans to Mr Lynn for the €5.5 million purchase of a house in Howth, Co Dublin, for which ACC Bank provided a loan of €3.78 million. Bank of Scotland (Ireland) will raise its concerns about the loans provided to Mr Lynn in a High Court hearing today.
The court heard on Monday that the bank had six mortgages with Mr Lynn that had to be registered and that it wanted to move urgently to register these mortgages as there would be an issue about the priority they would have on Mr Lynn's list of liabilities.
Four more banks - IIB, First Active, AIB and ACC - wanted to join a legal application by Bank of Scotland (Ireland), which will be heard today by the president of the High Court, Mr Justice Richard Johnson.
