Judge refers solicitor case to gardai

Documents relating to solicitor Thomas A Byrne's dealings with the Educational Building Society, one of four banks which today…

Documents relating to solicitor Thomas A Byrne's dealings with the Educational Building Society, one of four banks which today secured judgment for a total sum of about €30 million against Mr Byrne, are to be sent to the Garda National Bureau of Fraud Investigation, a High Court judge ordered.

Mr Justice Peter Kelly said there were "disturbing matters" in the EBS documents which should be considered "by those charged with enforcement of the criminal law".

The Bank had contended sums were loaned on foot of undertakings which were not put in place and dishonoured "on a grand scale", he said.

EBS was one of four banks which secured orders from the judge requiring Mr Byrne to pay them a total sum of about €30 million. Mr Byrne, whose practice has been closed by the Law Society, was in court for the proceedings before the Commercial Court.

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In separate applications, EBS secured judgment for €12.6 million; Anglo Irish Bank for €4.89 million; IIB Bank for some €9 million and ACC Bank for some €2.56 million.

Mr Byrne did not oppose the motions for judgment but, in the IIB case, his counsel Mr Sean O Siothchain expressed concern that "false matters" were sworn by a man and woman in affidavits made for the benefit of IIB when it secured an injunction on October 22nd last which restrained Mr Byrne reducing his assets or accounts below €9 million.

In those circumstances, counsel indicated his side would be applying to vary or discharge that injunction and to issue proceedings against others. He said the court should note that a separate order freezing Mr Byrne's accounts had been granted by the President of the High Court in other proceedings.

He adjourned the hearing of Mr Byrne's motion to discharge the accounts freezing order to Monday next. The court was told last week those orders had been too late to prevent the disappearance of a sum of €9 million, loaned by IIB Bank to Mr Byrne and lodged in an NIB account.

In the EBS case, the judge noted EBS had advanced loans to Mr Byrne from August 2003 to August 2007 to assist him in buying commercial and residential properties and to reschedule his debts.

He said it was clear Mr Byrne had agreed to provide security for loans by having first legal mortgages put in place in favour of the Bank and undertakings were given by authorised solicitors in his firm.

By October 2007, it seemed that, in relation to 22 properties, no mortgage or legal charge had been registered in favour of EBS. Some of those properties were secured for other institutions and some appeared to be owned by persons other than Mr Byrne. In those circumstances, EBS was clearly entitled to judgment for the €12.5 million sought.