A High Court judge has ordered that legal documents relating to solicitor Michael Lynn's dealings with First Active plc should be sent to the Garda National Bureau for Fraud Investigation.
Mr Lynn's practice has been closed by the Law Society and his total liabilities have been estimated at up to €70 million.
While Mr Justice Peter Kelly stressed yesterday that he was not expressing a view "one way or the other" on matters raised in affidavits of First Active, he said he "could not ignore" the factual material relating to the modus operandi engaged in by Mr Lynn where large sums of money were drawn down by the bank in circumstances where undertakings and agreements "largely appear not to have been honoured".
He directed the court registrar to send all the material produced in the First Active proceedings to the director of the National Bureau of Fraud Investigation to be considered and investigated if the bureau believed such an investigation was appropriate.
The judge noted First Active had said its primary concern in its proceedings was to recover monies loaned to Mr Lynn and in that regard it had secured an order directing Mr Lynn to pay it some €5.1 million. The bank had not opposed referring the material to the bureau and had said that issue was for the court to decide.
Gabriel Gavigan, for Mr Lynn, had earlier said the fact Mr Lynn had not opposed the bank's application for summary judgment against him was not to be taken as an admission of any material in the affidavits. Counsel submitted the material in the bank's affidavits did not amount to alleged overt acts of criminality. The bank alleged failures on the part of Mr Lynn but did not allege criminality.
Counsel was referring to sections of affidavits by First Active in which it claimed that Mr Lynn owed it more than €5.1 million; that registration of securities were delayed due to failures by Mr Lynn, including failures to produce certificates or comply with undertakings and that Mr Lynn may have sold on three properties without discharging mortgages or sums due to the bank.
Mr Justice Kelly said nothing he had heard suggested the referral order should not be made and he would make it.
The judge, sitting in the Commercial Court, dealt yesterday with several matters relating to Mr Lynn's dealings with banks and individuals.
He granted an application by Brian Kennedy BL, for ACC Bank, for judgment of some €1.74 million against Mr Lynn in relation to mortgage and loan facilities advanced to him. (The bank has also made a demand of Mr Lynn regarding a further loan advanced to him, secured over Glenlion House, Thormanby Road, Baily, Howth, and may in due course "take further steps" relating to that property).
The judge also admitted to the court list proceedings in which National Irish Bank is seeking judgment for some €1.338 million against Mr Lynn and will deal with that application on Friday.
Other proceedings in which Frank Kelly, a builder, of Meadow Lodge, Hollystown, Co Dublin, and Michael O'Driscoll, a quantity surveyor, of Lower Kimmage Road, Harold's Cross, are seeking €2.4 million and declarations against the solicitor, were also admitted.
