Permanent TSB has begun legal proceedings to recover over €10m owed to it by solicitor Michael Lynn.
The bank confirmed that it had advanced over €10m to Mr Lynn through a number of loans in respect of 27 properties. It added that these loans were secured by undertakings by a solicitor who was not Michael Lynn.
Lynn's practice was shut down by the Law Society two weeks ago after it reported 'acts of dishonesty' on the part of Michael Lynn in relation to clients' money.
Mr Lynn, who practices as Capel Law in Dublin, was investigated by the society due to concerns about his property dealings.
Meanwhile, the High Court has been told that the whereabouts of a solicitor whose practice was shut down by the Law Society yesterday are unknown.
Thomas Byrne, from Lad Lane, Baggot St in Dublin, with a practice in Walkinstown, is being investigated by the Law Society. IIB Bank has also taken action against him in relation to a €9m loan given to Mr Byrne in September.
The High Court was told IIB Bank has made several attempts to contact Mr Byrne after the court granted freezing orders against his accounts on Monday. Senior Counsel Michael Cush said Mr Byrne's whereabouts were unknown.
Miss Justice Mary Laffoy continued the freezing orders and also granted an order compelling National Irish Bank, where Mr Byrne holds his accounts, to disclose details of Mr Byrne's bank accounts since the loan for €9m was drawn down on September 7.
The court has been told that IIB Bank granted the loan after Mr Byrne offered 20 other properties as security. But more than a dozen of these properties were already mortgaged, some with more than one other financial institution.
The Law Society carried out an audit of Mr Byrne's office on Monday. Mr Byrne did not show up at his office that day. This morning, a barrister for Bank of Scotland Ireland indicated to the High Court that it too had several mortgages with Mr Byrne. The case will be back before the court next Tuesday.
Mr Byrne's practice is the second to be shut down by the Law Society in the last week and a half.
