Thomas Byrne, the Dublin solicitor whose practice collapsed last month with debts of €47.5 million, came to the attention of the Law Society as far back as 2002.
The society, which regulates the country's solicitors, examined Mr Byrne at that point and ordered that he should not be be the sole signatory of cheques on the account into which his clients' money was lodged in trust.
The society concluded that there should be a second signatory on his client account. It followed an investigation by a society representative who contacted the financial institution which held the client account. He said that Mr Byrne should not have sole access to the account.
Thomas Byrne & Co was finally closed down by the Law Society last month over concerns about his dealings. His known bank liabilities to at least seven financial institutions now stand at €47.5 million. He also has liabilities to other financial institutions.
The High Court has heard that he drew down multiple mortgages from several institutions on the same properties by failing to register securities on the loans as promised in undertakings provided by him.
Ken Murphy, director general of the Law Society, said he could not comment for legal reasons as Mr Byrne was the subject of a court action taken by the society.
Mr Byrne came to the Law Society's attention again in 2005 when Irish Life & Permanent made a complaint to it about Mr Byrne after he failed to honour an undertaking on a property transaction.
In December 2006 the Law Society found Mr Byrne guilty of misconduct for allowing a deficit of almost €1.7 million on his client account at May 31st, 2005, and for allowing personal transactions to be drawn on the account. He was censured by the Law Society and ordered to pay €15,000, the maximum fine which can be imposed, to the society's compensation fund. He continued to operate his legal practice in Walkinstown until he was closed down last month.
The court was told on Monday that files seized by the Law Society from Mr Byrne have been given to the Criminal Assets Bureau and the Garda National Bureau of Fraud Investigation on foot of court orders.
Meanwhile, a High Court judge yesterday refused to make a summary order requiring Bríd Murphy, wife of solicitor Michael Lynn, to repay Bank of Scotland Ireland a €3.85 million loan advanced to the couple to buy a home in Howth. There should instead be a full trial on the issue, the court directed.