Michael Lynn breached £3.6m mortgage deal with Ulster Bank in a year, lawsuit alleges

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Former lawyer Michael Lynn breached an agreement with a bank a year after securing a €3.6million loan, according to his multimillion-dollar theft lawsuit.

Mr Lynn (53) faces 21 charges relating to the alleged theft of around €27 million from seven financial institutions, the trial heard. He denies all the charges against him.

The financial institutions concerned 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.

Multiple mortgages

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

According to the prosecution, Mr Lynn obtained several mortgages on the same properties in a situation where the banks were unaware that other institutions were also providing financing.

Testifying on Friday, Sam Beamish told Patrick McGrath SC, prosecuting, that he was previously director of corporate banking for Ulster Bank before his retirement, having joined the bank in 2004.

Mr Beamish said that in September 2006 Mr Lynn approached the bank for financing to purchase 11 properties in Dublin as investment properties and requested 85% of the financing from the bank for a total of €3,650,000.

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

Mr Beamish said the bank had received commitment letters relating to each of the 11 investment properties. He said each of the letters stated that Mr Lynn had given attorney Fiona McAleenan irrevocable authority to give the recognizance.

According to the prosecution, the letters of engagement provided during the applications which were allegedly signed by an attorney and associate of Mr. Lynn’s law firm were in fact forged signed by an employee of Mr. Lynn.

No refund made

Mr Beamish said that in October 2006 the €3,650,000 loan was transferred to Mr Lynn’s law firm account. He said he could confirm that the bank had been receiving payments on this loan for some time.

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

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

Mr Kavanagh asked him that since he had little or nothing to do with this particular loan, he was surprised to be the one asked to make a statement to gardaí.

Mr. Beamish replied that he had been the head of the business centre, that the relationship manager with Mr. Lynn had reported to him, and that the bank had decided that he was the one to give the witness statement.

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

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