A LIMERICK solicitor who was suspended from practising earlier this week has been named by the High Court.
Michael Small, Michael Small Solicitors, Carrick House, Newenham Street, Limerick, had his accounts frozen and was suspended from practising following an application by the Law Society on Tuesday.
He was also prevented from disposing of any assets in his possession.
The Law Society had informed the court that Mr Small had operated a secret client account, which had a deficit of €1.2 million.
The interim orders granted on Tuesday were continued yesterday by Mr Justice John Cooke.
The judge also granted orders requiring Mr Small to hand over all his records and files to the Law Society.
The court had heard earlier in the week that the Law Society’s regulation of practise committee believed the solicitor had acted dishonestly.
The society’s counsel, Paul Anthony McDermott, said that while it was uncertain what was happening, it appeared the solicitor was involved with a mortgage broker where fake valuations of properties were given.
It was thought mortgages were obtained on foot of those valuations, but it was not known where all of the money obtained in those mortgages was diverted to.
Mr McDermott said the matter was something authorities other than the society should be investigating, as the society had been unable to fully work out what was going on. All that was known for certain was the second account had a deficit of €1.2 million.
The court also heard the Law Society had carried out an inspection of Mr Small’s files and client account in May, but nothing of any great concern was found.
Earlier this month, Mr Small informed the Law Society of the existence of a second “secret client account” after a client had threatened to make a complaint in relation to his handling of a mortgage, Mr McDermott said.
Mr Small was not named when the orders against him were initially granted so that he could come to court and apply to have the matter heard in private. However, he did not appear in court yesterday to make the application.
Mr McDermott said it was the Law Society’s position that such matters be heard in public.
The case was adjourned to September.