A High Court judge has suggested that the Garda fraud squad could become involved in investigating the affairs of solicitor Michael Lynn.

Mr Justice Peter Kelly said he needed to consider whether or not to send documentation received from First Active to the Director of the National Bureau of Fraud Investigation. The judge said he would hear the opinions of lawyers for First Active on Monday afternoon.

Mr Justice Peter Kelly made his comments at the end of First Active's proceedings against Michael Lynn for the recovery of €5.1m.

He said that although the case was a civil matter, the Court could not lose sight of the matters referred to in the sworn documents submitted by First Active.

Mr Justice Kelly referred particularly to claims by First Active that Mr Lynn had not registered seven properties he had offered as security for the loan he received and that he may have sold on three of the properties without discharging the mortgages or paying the money back.

Mr Justice Kelly said he had to consider whether or not he should ask the Registrar of the Commercial Court to send on the papers to the Director of the National Bureau of Fraud Investigation.

He asked for the views of lawyers for First Active and for Mr Lynn.

Mr Lynn's barrister, Gabriel Gavigan, said Mr Lynn would not want to do anything that would incriminate himself but he said he may indeed have an answer to the allegations made by First Active.  

The Commercial Court also heard from three more banks this morning who are looking for the repayment of loans they gave to Michael Lynn.

ACC Bank, Bank of Scotland Ireland, and Permanent TSB are looking for a total of almost €18m. Bank of Scotland Ireland is also taking action against Mr Lynn's wife, Brid Murphy, for the recovery of €3.8m.

Permanent TSB is also taking its action for the recovery of €10.5m against Fiona McAleenan, the solicitor who first alerted the Law Society about Mr Lynn.

The bank alleges that she was a partner in Mr Lynn's firm and gave undertakings on a number of properties between 2005 and September this year.

Ms McAleenan's senior counsel, John O'Donnell, said she would be saying that she was not a partner in Mr Lynn's practice but was an employee. He said in many of the cases, her signature was forged on the undertakings.  

He added that she was unaware of any of the correspondence from the banks in relation to the properties. He said she came upon it and asked Mr Lynn's assistant what it was about and was told to mind her own business.

Mr O'Donnell said Ms McAleenan resigned and then went to the Law Society.