Some of the country's leading banks are trying to 'jump the queue' in the race to be the first to register claims over properties the subject of multiple mortgages taken out by solicitor Michael Lynn, the High Court was told by lawyers for other banks today.
The court also heard that at least three, and maybe four, mortgages were taken out by Mr Lynn within days of each other in April 2007 over on property - Glenlion House, Thiomrmanby Road, Howth, Co Dublin.
The three known mortgages were taken out for a total estimated value of about €12 million while the house is said to be worth some €5 million.
The Law Society, which has closed Mr Lynn's practice, Michael Lynn & Company, and is still investigating his affairs, has so far secured information about 78 properties concerning which Mr Lynn was a borrower of funds, it also emerged.
Mr Lynn, of St Alban's Park, Sandymount, Dublin, is alleged to have taken out multiple mortgages over a large number of properties and his liabilities have been estimated at up to €70 million.
Further information about other properties in relation to which Mr Lynn or solicitors in his firm gave undertakings is being finalised and the Society hopes to have that information by Monday week when proceedings by the Society against Mr Lynn will again be before the court.
The President of the High Court, Mr Justice Richard Johnson, yesterday ordered Mr Lynn to disclose within ten days all undertakings given over properties and rejected Mr Lynn's claim that he is entitled to invoke privilege against self-incrimination in relation to providing that information.
Mr Paul Burns SC, for Mr Lynn, said one division of the court had referred papers about Mr Lynn's dealings to the National Bureau of Fraud Investigation while another division was asking Mr Lynn to provide information which might go against him in other proceedings. Mr Lynn was trying to give reasonable co-operation but was in "an invidious position".
Mr Justice Johnson said there was a statutory basis for the order requiring Mr Lynn to disclose the undertakings. Mr Lynn was also a solicitor and officer of the court, the judge added.
Mr Lynn has provided a schedule of properties to the Law Society which also has possession of title documents held in his practice and other material. A schedule of 78 properties here and one outside the jursidiction had been received and the Society also has material about 155 undertakings given to institutions.
Mr Shane Murphy SC, for the Society, said there remained a "significant issue" about the whereabouts of "a substantial number" of title deeds and the Society was concerned that information was not readily available to Mr Lynn. The search for those documents was continuing and the Society wanted information from financial institutions in that regard.
From the material available, issues of concern emerged requiring further research, counsel said. The Society had concerns about potential third party or client undertakings and needed to establish the extent to which there were overlapping undertakings.
Mr Justice Johnson said there was "plenty" of necessary litigation involved and further unnecessary litigation should be prevented.