Michael Lynn’s Trial Continues Over Alleged €27 Million Bank Theft

Former solicitor Michael Lynn is on trial, facing allegations of stealing approximately €27 million from multiple financial institutions. The prosecution contends that between October 2006 and April 2007, Lynn obtained several mortgages on the same properties without the banks’ knowledge, specifically targeting Bank of Ireland and Bank of Scotland Ireland. Lynn has denied all 21 counts of theft.

The defense, led by Mark Lynam SC, claims that Michael Fingleton, chairman of the Irish Nationwide Building Society, was primarily responsible for introducing Lynn to Bank of Scotland Ireland, acting as his “personal banker.” They argue that when Fingleton was on vacation, senior staff at Bank of Scotland Ireland were contacted for loan approvals.

Witness Tom Brennan of Bank of Scotland Ireland testified about an unsuccessful mortgage application with Lynn in April 2006, followed by a proposal involving offices on Capel Street and ten residential properties. In January 2007, the bank issued a €3.5 million offer letter to Proper T Capital Ltd, a company directed by Lynn and his wife, Brid Murphy. Brennan confirmed that he was unaware Lynn was seeking financing from other institutions for these properties, and noted that the bank held the first legal charge over nine of the ten properties in question.

However, Brennan disputed the defense’s assertion that Fingleton acted as Lynn’s “personal banker,” facilitating contact with senior bank staff in his absence due to vacation.

Nicholas Robert Hamilton from the National Irish Bank also provided testimony, stating that their bank granted loans for Lynn’s firm, Michael Lynn and Co Solicitors, for property purchases solely in Dublin, and he denied having knowledge of any covert agreements regarding funds used abroad.

Arthur King from ICS Building Society confirmed that a €3.5 million offer was issued to Lynn following an assessment of his application, but was unaware of any arrangement where Lynn would bail out the bank if a loan taken out by a third party failed. The offer letter stipulated a First Legal Charge (FLC) on the properties involved.

Fiona McAleenan, referenced in the mortgage offer document, denied having signed it. Additional trading accounts for Kendra Holdings and Michael Lynn and Co Solicitors were submitted as part of Lynn’s application process. The defense suggested that the bank could pursue legal action against the solicitors, who presumably had professional indemnity insurance, should issues arise. King refuted this assertion.

In December 2006, a cheque for €2.74 million was issued by the Bank of Ireland to Michael Lynn and Co Solicitors. Brennan acknowledged he was aware of the media reports concerning Lynn in October 2007, during which Lynn described the situation as a “misunderstanding.”

The trial is ongoing under the supervision of Judge Martin Nolan and a jury.