Lynn ‘embarrassed’ about delay in clearing €1.9m loan, court hears
Posted on 8th March 2022 at 20:25
Ex-Permanent TSB manager gives evidence in relation to allegation of €3.7m theft from institution
Former solicitor Michael Lynn was described by a bank manager as “embarrassed and annoyed” about a delay in clearing a €1.9 million loan in 2007, his multimillion euro theft trial has heard.
Mr Lynn (53) is on trial at Dublin Circuit Criminal Court accused of the theft of about €27 million from seven financial institutions.
Mr Lynn, of Millbrook Court, Red Cross, Co Wicklow, has pleaded not guilty to 21 counts of theft in Dublin between October 23rd, 2006, and April 20th, 2007.
It is the prosecution case that Mr Lynn obtained multiple mortgages on the same properties in a situation where banks were unaware that other institutions were also providing finance.
The financial institutions involved 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 (INBS).
The court heard evidence on Tuesday from former Permanent TSB commercial lending manager John O’Brien in relation to an allegation that Mr Lynn stole €3.7 million from the institution in June 2007.
In April 2007, Mr Lynn had borrowings of €1.9 million with the bank when he applied for a €4.9 million loan to purchase eight residential investment properties in various locations in Dublin.
One of the conditions of this loan was for Mr Lynn to clear the outstanding balance of €1.9 million, the court heard.
In an email to Mr O’Brien, which was shown to the court, the then Blanchardstown branch bank manager Ciaran Farrell said: “Due to confusion in Michael’s office, this was only done last week and he is embarrassed and annoyed about it.”
The email continuted: “I questioned him on it and it was down to clerical error and he will show us his account balance to show there was €6 million on deposit at the time.”
Mr Farrell went on to say: “I do believe the genuinely (sic) of the delay in redeeming the mortgages and his embarrassment in being told of this.
“This is based on meeting him and the fact he has little or nothing to do with the running of his practice and would be out of the country for weeks and months at a time.”
The court was shown documents supplied to the bank relating to Mr Lynn’s overseas investment company, Kendar Global Properties. It outlined a number of investment projects in Portugal, Hungary, Slovakia and Bulgaria, with projected net profits in multiple millions.
One development, with a timeframe of 2007 to 2010, was projected to return a net profit of €30 million.
Mr O’Brien agreed with defence counsel that he accepted these documents “at face value”.
Shortly after the bank approved the €4.9 million loan in May 2007, Mr O’Brien and Mr Farrell met Mr Lynn to discuss another loan involving 12 rental investment properties.
Along with this €3.7 million loan, there was a €5.5 million refinancing proposal relating to a property Mr Lynn had bought using a loan from Anglo Irish Bank, the court heard. This was for business premises Mr Lynn had recently moved to on Capel Street, called the Capel Street Premises.
Permanent TSB approved both of these loans in June 2007, which would have taken Mr Lynn’s borrowings with the bank to just over €14 million, the court heard.
The court was shown documents that the €3.7 million loan was drawn down, but was told Mr Lynn did not ultimately proceed with the €5.5 million loan offer.
The trial continues before Judge Martin Nolan and a jury.
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