Law Society obtains €900k from rogue solicitors frozen funds
The Law Society has secured a High Court order allowing it to have more than €900,000 transferred from client accounts operated by fugitive solicitor Michael Lynn to the society's compensation fund.
Today the President of the High Court Mr Justice Richard Johnson granted the Law Society the transfer from the accounts, which had been subject to a freezing order in 2007 when details first emerged of what turned out to be an €80m liability by Mr Lynn to various financial institutions and others.
Those liabilities arising out of alleged multiple mortgage undertakings given in his professional capacity.
Shane Murphy SC for the Law Society said that the application was in relation to sums of €549,000 and €394,000 held in two client accounts operated by Mr Lynn at the AIB in Naas Co Kildare.
Counsel said that since May of this year the Law Society had used the fund to compensate some 11 clients of Mr Lynn. Counsel also told that the AIB had consented to the order being made. The court was also informed that Irish Nationwide Building Society also had no objections to the order being made.
Previously the INBS had previously objected to the transfer. It expressed concern the transfer may prejudice its efforts to recover monies owed to it by Mr Lynn.
It wanted to be satisfied that the money that was gone belonged to them. Ronan Murphy SC for the INBS said his client was not objecting but wished reserving its position in relation to any potential future action over the money held in the client accounts.
In reply to the President's query if there was any news about a prosecution against Mr Lynn Mr Murphy said he was not privy to the Garda investigation, but was simply aware that matters in that regard were progressing.
"Excellent," replied the President. Mr Lynn, who is believed to be in continental Europe, has been struck off the roll of solicitors and fined €2m.
