The bank claims ex-lawyer Michael Lynn broke the agreement a year after receiving a €3.6million loan


Former lawyer Michael Lynn has broken an agreement with a bank a year after being awarded a €3.6million loan, his multimillion-euro theft lawsuit has heard.

Mr Lynn, 53, faces 21 charges for allegedly stealing around €27 million from seven financial institutions, the trial has heard. He denies all allegations against him.

The financial institutions involved are Bank of Ireland Mortgages Bank Ltd, Danske Bank, Irish Life and Permanent, Ulster Bank, ACC Bank PLC, Bank of Scotland Ireland Ltd and Irish Nationwide Building Society.

Mr Lynn, of Millbrook Court, Red Cross, Co. Wicklow, pleaded not guilty to 21 counts of theft between 23 October 2006 and 20 April 2007 in Dublin.

It is the prosecution’s case that Mr. Lynn obtained multiple mortgages on the same properties in a situation where the banks were unaware that other institutions were also providing financing.

Ulster Bank testimony

Sam Beamish testified on Friday to Patrick McGrath SC, prosecutors, that before retiring he was a former director of commercial banking at Ulster Bank, having joined the bank in 2004.

Mr Beamish said Mr Lynn contacted the bank in September 2006 to obtain financing for the purchase of 11 properties in Dublin for investment property and requested 85% of financing from the bank totaling €3,650,000.

He said a formal offer letter for the loans was sent to Mr Lynn later that month, setting out the terms of the loans. He said this was later signed and returned by Mr Lynn.

Mr Beamish said the bank had received letters of commitment in relation to each of the 11 investment properties. He said each of the letters stated that Mr Lynn had irrevocably authorized attorney Fiona McAleenan to make the commitment.

It is the prosecution’s case that letters of engagement presented on job applications and purportedly signed by an attorney and partner in Mr Lynn’s law firm were in fact forgeries signed by an employee of Mr Lynn.

Mr Beamish said the €3,650,000 loan was deposited into Mr Lynn’s solicitor’s account in October 2006. He said he could confirm that the bank had received payments on this loan for a specific period of time.

He said that in October 2007 Mr Lynn breached the agreement with the bank and that the bank had issued a letter demanding full and final payment of all outstanding loans. He said that at the time he made a statement to Gardaí, no repayment had been made.

choice of witness

Mr Beamish agreed with Feargal Kavanagh SC and defended that he had never met Mr Lynn, never spoken to him and never acted as his banker.

Mr Kavanagh asked him if he was surprised that he was the one asked to make a statement to Gardaí, given that he had little or no involvement in this particular loan.

Mr Beamish replied that he had been the manager of the business center, that the account manager assigned to Mr Lynn had reported to him and that the bank had decided that he was the person to give the testimony.

The trial will continue before Judge Martin Nolan and a jury next week.


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