€5.25m paid into Lynn's property business this year

Some €5.25 million was paid from the client account of Michael Lynn's law practice, Capel Law in Dublin, to the bank account of his property business during a five-month period this year.

A Law Society accountant who investigated Mr Lynn's practice last month reported that 26 payments, the largest amounting to €471,000, were made to a bank account of his property business, Kendar Holdings, from Capel Law's client account between April 2nd and August 29th.

The accountant's report says many of the payments were "debited to the ledger cards of Michael Lynn". She added that it was understood that Kendar was developing property in Portugal. According to the report, Irish investors had paid Mr Lynn's property business about 220 deposits.

The accountant, Mary Devereux, concluded in her report to the Law Society that the solicitor had been using the practice's client account for personal transactions and that there appeared to be "a free flow of funds" between the client bank account and Kendar's bank account.

She said loans were drawn down and lodged to Mr Lynn's client account with money withdrawn within days and transferred abroad to purchase properties or lodged to Mr Lynn's personal bank account.