THE LAW Society has secured a High Court order allowing it to have more than €900,000 transferred from client accounts of fugitive solicitor Michael Lynn to the society’s compensation fund.
Mr Justice Richard Johnson yesterday granted the society the transfer from the accounts, subject to a freezing order since 2007 when details first emerged of what turned out to be an €80 million liability by Mr Lynn to various financial institutions and others. The liabilities arise out of alleged multiple mortgage undertakings given in his professional capacity.
Mr Lynn, who is believed to be in continental Europe, has been struck off the roll of solicitors and fined €2 million.
Shane Murphy SC, for the society, said yesterday its application was in relation to sums of €549,000 and €394,000 held in two client accounts operated by Mr Lynn at the AIB branch in Naas, Co Kildare. Since May last, the society had used its fund to compensate 11 clients of Mr Lynn, Mr Murphy said.
He said AIB had consented to the order being made while Irish Nationwide Building Society had no objections. Previously, Nationwide objected to the transfer on grounds it might prejudice its own efforts to recover monies owed to it by Mr Lynn.
Ronan Murphy SC, for Nationwide, said it was not objecting to the order sought but was reserving its position in relation to any potential future action over the money held in the client accounts.
In reply to the judge’s query about whether there was any news about a prosecution against Mr Lynn, Shane Murphy said he was not privy to the Garda investigation but was simply aware matters were progressing.