High Court judge refers Lynn documents to gardai

A High Court judge has ordered that legal documents relating to solicitor Michael Lynn's dealings with First Active should be…

A High Court judge has ordered that legal documents relating to solicitor Michael Lynn's dealings with First Active 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 as up to €70 million. The number of writs issued in civil proceedings against Mr Lynn is now at 55.

While Mr Justice Peter Kelly stressed 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

from the bank in circumstances where undertakings and agreements "largely appear not to have been honoured".

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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.

Gabriel Gavigan, for Mr Lynn, had earlier said that 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.

The judge, sitting in the Commercial Court, dealt 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 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 for judgment 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, Harolds Cross, are seeking €2.4 million and declarations against the solicitor, were also admitted.

Tomorrow, the judge will deal with a separate application by IIB Homeloans for judgment of some €2.5 million against Mr Lynn and orders requiring the solicitor to complete certain securities. The IIB proceedings were entered into the Commercial Court list yesterday.

Meanwhile, the President of the High Court, Mr Justice Richard Johnson, was told today in other proceedings brought by the Law Society against Mr Lynn that Mr Lynn has filed a "terse" affidavit in those proceedings.

In that affidavit, Mr Lynn has submitted a schedule of accounts and assets currently in his possession and also a list of accounts and assets no longer in his possession. Mr Lynn said the lists were "as complete as possible" but if other accounts or properties came to light, he would list those in an additional affidavit.

He also said in the affidavit that he had disposed of certain properties "in the normal course of business".