A High Court judge will decide next week whether to send papers relating to solicitor Michael Lynn to the National Bureau for Fraud Investigation (NBFI).
The number of writs issued in civil proceedings against Mr Lynn, whose practice has been closed by the Law Society and whose total liabilities have been estimated as up to €70 million, has now risen to 55.
Mr Justice Peter Kelly said yesterday that, having read claims by First Active plc - including claims Mr Lynn owed it more than €5.1 million; that registration of securities was delayed due to failures by Mr Lynn, including failures to produce certificates or comply with undertakings; and that Mr Lynn may have sold on three properties without discharging mortgages or sums due to the bank - he was considering whether such matters "might warrant investigation by those charged with the criminal law".
The judge said this was a civil court but there was sworn material relating to how monies were got by Mr Lynn from First Active and Mr Lynn's behaviour after that. While Mr Lynn had made no admission whatever relating to the matters in the affidavits, the court "could not blind itself" to what had been sworn.
Gabriel Gavigan, for Mr Lynn, said he did not want to comment on what was sworn in the affidavits and Mr Lynn was precluded from swearing an affidavit as he did not want to incriminate himself. The judge, counsel added, had heard only one side and Mr Lynn might have answers to what was sworn.
Eoin McCullough SC, for First Active, said he needed to take instructions on what the judge had said and Mr Justice Kelly adjourned the issue of whether papers should be referred to the NBFI to Monday.
The judge, sitting in the Commercial Court, made his comments after dealing with several matters relating to Mr Lynn's dealings with banks and individuals.
Earlier, the judge was told that Fiona McAleenan, of Bethaghstown Wood, Bettystown, Co Meath, who is being sued by Permanent TSB for some €10.5 million over personal undertakings allegedly provided by her in relation to various properties, denies she was a partner in Mr Lynn's firms and also claims that purported signatures of hers on certain undertakings were "forged".
John O'Donnell SC, for Ms McAleenan, said she is a married mother of seven and was an employee in Michael Lynn & Company, not a partner. Her case was that some undertakings were forged while others were signed by her but as a solicitor, not a partner.
Ms McAleenan was an employee of Mr Lynn's company and all the correspondence from banks about Mr Lynn's dealings was kept from her, counsel said.
When she had come across that correspondence and raised the matter, she was told to: "Mind her own business", had then resigned and gone to the Law Society and that was why these matters arose.
The judge was also told that Frank Kelly, a builder, of Meadow Lodge, Hollystown, Co Dublin, and Michael O'Driscoll, a quantity surveyor, of Lower Kimmage Road, Harold's Cross, who had dealings with Mr Lynn from 2002, have also brought proceedings against him relating to the registration of certain properties and involving a total claim of up to €2.4 million.
Both men claim Mr Lynn had failed to register their legal or beneficial interests in certain properties and used the same properties as security to gain further finance advances.
In other proceedings, the judge adjourned to Monday next an application by Brian Kennedy, for ACC Bank, for judgment of some €1.74 million against Mr Lynn in relation to mortgage and loan facilities advanced to him. The bank has also made a demand of Mr Lynn regarding a further loan advanced to him, secured over Glenlion House, Thormanby Road, Baily, Howth, and may in due course "take further steps" relating to that property.
