Solicitor who worked in Lynn’s practice gives evidence in multi-million-euro theft trial

A solicitor who worked in former solicitor Michael Lynn’s practice has told his multi-million-euro theft trial that her work involved signing letters of undertaking, but she expected the person dealing with the file to register the legal charge.

Mr Lynn (55), of Millbrook Court, Redcross, Co Wicklow is on trial accused of the theft of around €27 million from seven financial institutions.

He has pleaded not guilty to 21 counts of theft in Dublin between October 23, 2006 and April 20, 2007.

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

The financial institutions involved are Bank of Ireland, National Irish Bank (later known as Danske Bank), Irish Life and Permanent, Ulster Bank, ACC Bank, Bank of Scotland Ireland and Irish Nationwide Building Society.

Fiona McAleenan told Karl Finnegan SC, prosecuting, yesterday that she started working as a litigation solicitor with Michael Lynn and Company Solicitors in 2004.

She said Mr Lynn asked her during interview if she would mind doing some conveyancing work as a conveyancing solicitor was due to leave the practice.

Ms McAleenan said she “didn’t have any issue” with this, but made it clear that her experience was in litigation.

Ms McAleenan said another litigation solicitor left the practice shortly after she joined and she took over their work assisted by Liz Doyle, who was Mr Lynn’s assistant.

She said Mr Lynn was “out of the office quite a lot” and this became “increasingly the case from 2006”.

She said Mr Lynn was “primarily in contact” with Ms Doyle and the office manager during this period, “not so much with me”.

Ms McAleenan agreed that as a fully qualified solicitor, she would have been asked to sign documents from conveyancing files from time to time.

She said these documents would have included letters of undertaking on behalf of the practice’s clients and Mr Lynn.

She said she could be asked to do this by Ms Doyle and other staff at the firm.

Ms McAleenan said she had “no other involvement” beyond signing the letter of undertaking and it was then “a matter for the individual dealing with the file to ensure the charge was registered”.

She said she would have expected the person dealing with the file to ensure that the first legal charge was registered.

Ms McAleenan said she understood she was signing the letters of undertaking as the “duly authorised solicitor”.

She was then shown a letter of undertaking and agreed that it was her signature, but said she couldn’t recall signing it.

Ms McAleenan said she didn’t complete other parts of these documents and had a “strong recollection” of Ms Doyle coming to her office on one occasion “having everything completed before coming in for me to sign it, turning the pages and pointing out where I was to sign”.

She said Mr Lynn signed the borrower authorisation section of these letters of undertaking separately.

Mr Finnegan showed Ms McAleenan a letter of undertaking. The witness agreed it was her signature on the document, but said other lines, including one stating she was a partner, were not in her writing.

She told Mr Finnegan “I was never a partner in the practice”.

Ms McAleenan agreed that her signature was on another letter of undertaking, but the rest of the details had been filled in by someone else.

Mr Finnegan showed the witness a letter of undertaking for Bank of Ireland Mortgages. Ms McAleenan said she couldn’t recall signing this document.

Prosecuting counsel asked if it was her signature on the document. She replied “no, it’s not”.

Mr Finnegan then asked Ms McAleenan if she “had any idea who may have signed it”. She said “Liz Doyle”.

When asked why she believes this, Ms McAleenan said “I know Ms Doyle’s writing”.

She told Mr Finnegan that she had not said to Ms Doyle that she could sign on her behalf.

Mr Finnegan asked “why do you think she might done that”. Ms McAleenan replied that she was “acting on the instructions of Micheal Lynn”.

She agreed that she was surprised to see her signature on other documents.

The jury were told that Ms McAleenan would be recalled to provide further evidence later in the trial and the defence would leave the cross-examination until this point in time.

Earlier today/yesterday (Wed), Paul Dowling told John Berry BL, prosecuting, that he worked in Anglo Irish Bank between 2001 and late 2007.

He said he was a relationship manager with a portfolio of clients during 2006.

Mr Berry reminded the jury that Anglo Irish Bank does not form part of the trial.

An internal credit application by Proper T Ltd for funding to buy an office building and residential properties was shown to the jury.

Mr Dowling agreed that Mr Lynn was listed as a director of Proper T Ltd on this form.

He agreed with Mr Berry that the bank had sought first legal charge as security over these properties.

He said this application didn’t go ahead, but other applications did proceed.

He accepted that the form indicates that the bank viewed Mr Lynn as someone they wished to have an ongoing business relationship with.

Mr Dowling confirmed that Anglo Irish Bank had outsourced its legal work to external solicitors as this was considered efficient.

He said these firms also had professional indemnity insurance.

Mr Berry put it to Mr Dowling that Mr Lynn had obtained finance from National Irish Bank for four residential properties, then asked if he’d have recommended the application if he had known this.

Mr Dowing replied, “no”, adding that the bank did not lend without a first legal charge.

He agreed the bank provided loans to Mr Lynn in April and August 2007 to purchase four properties.

He said he became aware in late 2007 that there were difficulties in respect of these loans and properties.

Mr Dowling said he informed his line manager and a demand letter was issued for the loan to be repaid.

The bank later appointed a receiver. Mr Dowling agreed the bank did this as the first legal charge was registered.

The jury were told Mr Dowling would be recalled later in the trial to provide further evidence.

A certificate of incorporation for Proper T Ltd registered with the Companies Registration Office was also shown to the jury.

An employee of Allied Irish Bank confirmed that she provided statements for a client account of Michael Lynn and Company Solicitors to gardai after receiving a court order.

The bank statement was shown to the jury and the witness was asked by the prosecution to identify several transactions.

She told Mark Lynam SC, defending, that she couldn’t comment on whether or not there was more than one client account, but accepted “there may have been”.

She agreed she was asked to provide information about this specific client account.

Another witness told Mr Berry that she was the solicitor representing the owner of 298 Custom House Harbour during its sale to Mr Lynn.

She confirmed that the sale was expected to complete in February 2007 and when it didn’t, she issued a 28-day warning letter.

Ms Maguire said the sale completed shortly after March 22, 2007 and she used the sales proceeds to discharge her client’s mortgage on the property.

She agreed with Mr Berry that she had given an undertaking to repay the mortgage and once this was done, she sent the notice to Mr Lynn’s office.

When asked by Mr Berry if she would be surprised to learn that Mr Lynn had drawn down a mortgage in relation to this property in November 2006, she agreed she would.

Ms Maguire agreed with defence counsel that a notice can be sent by either party where there has been a delay. She said it is part of the terms of a contract and it’s “not that frequent, but it’s not unusual”.

The trial continues before Judge Martin Nolan and a jury.