The High Court has suspended an unnamed solicitor who is accused of being involved in a €1.2m mortgage fraud.
The court heard that the solicitor had a relationship with a mortgage broker, where properties were given fake values, mortgages were drawn down and the money diverted into an account.
Junior Counsel Paul Anthony McDermott, on behalf of the Law Society, said the solicitor called into the Law Society on 6 August and admitted to having a second bank account, which the society was not aware of.
He said the second account is in deficit to the tune of €1.2m. Mr McDermott said the Law Society cannot fully understand what is going on but that the Society's Regulation of Practice Committee had formed the opinion that he is guilty of dishonesty and fraud.
He said an agency apart from the Law Society may need to investigate what is actually going on as the Society does not have jurisdiction beyond solicitors.
The High Court heard that the solicitor went to a meeting in the Law Society this morning and said he would cease trading immediately.
The court granted an order suspending the solicitor, forcing him to hand over his files to the Law Society, freezing his bank accounts, and requiring him not to reduce his assets by €1.2m.
Mr McDermott said he would not name the solicitor at this stage in order to offer him time to come to court and explain himself. He said that he intended to name the solicitor when the case comes before the court again this Friday.
