Michael Lynn’s €27m theft trial hears bank loan evidence

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Former solicitor Michael Lynn was on trial at Dublin Circuit Criminal Court accused of stealing around €27 million from seven financial institutions. The proceedings were reported on 11 March 2022.

Lynn pleaded not guilty to 21 counts of theft in Dublin between 23 October 2006 and 20 April 2007. The prosecution alleged that he obtained multiple mortgages on the same properties while banks were unaware that other institutions were also providing finance.

Sean Alger, a former head of Permanent TSB’s commercial division, gave evidence on 11 March 2022. The trial heard that in April 2007 Lynn applied for a €4.9 million loan to buy eight Dublin investment properties while he had €1.9 million in borrowings with the bank. A condition required the earlier loan to be paid off, but there was a delay.

Defence counsel Feargal Kavanagh SC suggested the bank was happy to let the €1.9 million roll over and had given the further loan to put right the unmet condition. Alger said he could not answer the latter suggestion. He said the bank would not turn a blind eye to a repayment condition, although he was not close enough to the details and could not rule out an error or oversight. Kavanagh said he did not dispute that the bank had authorised the loan, but disputed the circumstances in which it was given.

An email shown to the court recorded that Lynn had told branch manager Ciaran Farrell the delay was due to confusion in his office and that he was embarrassed and annoyed. Alger said the email showed the bank had accepted Lynn’s explanation and had not turned a blind eye. The trial was due to continue the following week before Judge Martin Nolan and a jury.