The High Court has made orders freezing the assets and bank accounts of suspended Roscommon solicitor Declan O'Callaghan after The Law Society of Ireland said there was a €1 million shortfall in client accounts.
He consented to the orders this afternoon.
The move will effectively wind up his legal practice as the court has ordered that all files be handed over to The Law Society.
Earlier this year Mr O'Callaghan was suspended from practising as a solicitor and two referrals have been made to the Solicitors' Disciplinary Tribunal.
The Law Society said further concerns had been raised during its recent investigations leading to the application for the freezing orders.
The court has now directed that his assets should not be reduced below the value of €1m and that three properties including his family home be sold to re pay any shortfall in client accounts.
The move will result in the effective winding up of Kilraine O'Callaghan which had offices at Pound St, Kilcolman, Ballaghaderreen, Co Roscommon.
The High Court heard his daughters Aoife and Emer had not been accused of any dishonesty, had only become involved with the firm and the current proceedings to ensure clients continued to be protected by insurance after their father was suspended from practising.
They will now assist in handing over files to The Law Society.
Mr O'Callaghan will be allowed to withdraw €11,600 a month for his personal expenses including the payment of mortgages and bills which must be vouched.
His lawyers said Mr O'Callaghan had already repaid €671,000 and was determined to honour an undertaking to ensure that no client is at a loss.
President of the High Court Mr Justice Peter Kelly said it was important to stress that while The Law Society had made unequivocal allegations of dishonesty against Mr O'Callaghan, that was not a matter for determination by him in these proceedings.
He said that was to be determined by the Solicitors' Disciplinary Tribunal.
The judge noted that Mr O'Callaghan had "steadfastly denied any dishonesty" in a number of sworn statements to the court and had said that at all times he acted in the interest of clients.
Two referrals have been made by The Law Society to the Solicitors' Disciplinary Tribunal and a third may be made as a result of further investigations.
Files from his practice will be handed over to The Law Society on Friday morning.
Earlier barrister for The Law Society Neasa Bird told Mr Justice Kelly that since it began investigating complaints against Mr O'Callaghan, the society had become aware of other issues with client files and the deficit had risen significantly.
She said investigations had uncovered what appeared to be a pattern where money was taken out of accounts without client authorisation and efforts would subsequently be made to agree on a fee.
Ms Bird said this was clearly not the way solicitor fees are paid. Fees cannot be deducted from client accounts unless they are agreed and authorised and the taking of fees in such a manner was a misappropriation of funds she said, adding: "It is not the solicitors money," she said.
She also said a "recurring feature" was the use of clients money to clear debit balances on other client's files.
Initially there was a particular concern about the handling of the estate of one man.
A report prepared for the court had found in summary that the manner in which he had deducted "exorbitant" fees from the account of a minor was dishonest.
An investigator said he had "no qualms" about taking €354,000 in fees from a minor, the court was told. The fees represented 75% of the cash assets of the estate.
The money was repaid after a complaint was made, but the society was now concerned that money used for the repayment had been taken from other client accounts without authorisation, she said.
Mr O'Callaghan had told The Law Society that he had at all times acted in the interest of clients but Ms Bird said his explanations were "improbable".
The report prepared for the court by a law society appointed investigator concluded that the manner in which he had deducted funds from the estate of a client was dishonest and there was particular concern about the way in which the fees were deducted in multiple transactions for different amounts.
The amounts were deducted in more than 100 different transactions, the court was told.
Ms Bird said that ultimately the money was repaid and did not form part of the current deficit but it was relevant to the proceedings.
Law Society investigators also found that in the case of another client, a widow with three children, €100,000 had been deducted in fees, representing 25% of the total estate, €80,000 more that what had been agreed.
Mr O'Callaghan had produced a document purporting to be signed by the woman agreeing to the fees but the woman told the society she had no knowledge of the document and the fees had not been explained to her.
While the €80,000 had been repaid, the society had concerns about the source of funds for that repayment, Ms Bird said.
Investigators had also discovered that €41,000, which was held for four children from a father who died, had been dissipated between 2010 and 2017 and was not available when the children reached the age to receive the money.
In another case, €96,000 had been withdrawn in fees where the fixed charge had been estimated as €22,000.
The additional €74,000 had been taken in "multiple transfers" and some was used to repay a deficit on another client account, Ms Bird told the court.
In another case, the Alzheimer Society of Ireland had been given €35,000 from the proceeds of a will but the society had not been told that €34,000 had been deducted in fees from the original amount.
Since the discovery, the Alzheimer Society had been reimbursed with a further €24,000, the court was told.
