Nationwide owed most by Michael Lynn

Irish Nationwide Building Society is owed the most money by the solicitor and property developer Michael Lynn, whose legal practice was shut down on Monday, according to the report on the Law Society's investigation into his practice.

Mr Lynn (39), who practised as Capel Law from the Capel Buildings near the Four Courts in Dublin, drew down €26.3 million from at least seven lenders since January, the High Court heard on Monday.

The Law Society launched its investigation into Mr Lynn's practice last month after it became concerned about his property dealings. It secured a court order last week freezing his assets. On Monday he gave the President of the High Court, Mr Justice Richard Johnson, an undertaking not to practise.

The court was told that Mr Lynn owned 105 properties personally or through his company, Proper T Capel, 35 to 40 of them in nine countries, including Bulgaria, Slovakia and China. About 40 properties were bought this year, financed by loans. Mr Lynn also ran a business, Kendar Holdings, developing property in Portugal and Hungary, while running his legal practice.

A full list of the financial institutions that provided the loans was not given at the hearing on Monday. However, the Law Society's investigation report, which has been seen by The Irish Times, shows that, overall, Irish Nationwide is owed most, followed by Permanent TSB, Ulster Bank and National Irish Bank.

The Law Society report says that this year alone, Mr Lynn has drawn down two personal loans totalling €5.525 million from Irish Nationwide - €1.4 million in January and €4.125 million in April.

Mr Lynn also borrowed €600,000 from Ulster Bank in February; €1.33 million from NIB and €1.14 million from Anglo Irish Bank in March; €3.85 million from Bank of Scotland in April; €3.725 million from Permanent TSB in June; and €3.78 million from ACC in August.

The Law Society's investigating accountant, who spent five days examining the practice last month, said two more loans - €4.921 million in May and €1.5 million in August - were drawn down, but did not reveal the source of the funds. The court heard that AIB and Bank of Ireland were also owed money.

The accountant said two loan offers, for €4 million from Bank of Scotland (Ireland) and €1.3 million from NIB, had been secured on the same property, 7 Killarney Street, Dublin 1, in addition to other properties. Mr Lynn made double mortgage applications on some properties, the court heard on Monday.

James Gilhooley SC, for Mr Lynn, said his client's solicitor Giles Kennedy had arranged to meet the syndicate of banks tomorrow to see how Mr Lynn's liabilities could be repaid in an orderly way. Mr Lynn has promised to identify all his properties and make them available to be sold to meet his debts.

The report says Mr Kennedy told an emergency meeting of the Law Society's regulation of practice committee on October 9th that "Anglo Irish Bank and Bank of Scotland (Ireland) seem to be secured, but that other banks had no standing and there were complex issues".

Mr Kennedy later said Proper T Capel's assets were secured with Anglo Irish and Bank of Scotland (Ireland).