Michael Lynn trial: Lawyer says signature on pledge letter for €3.7m loan is not hers


A SOLICITOR believed to have signed a pledge related to a 3.7 million euro loan told a bank that the signature on the document was not hers, a multimillion-euro theft trial has been adjudicated.

The former Permanent TSB official told the trial of Michael Lynn (53) that alarm bells went off for him in October 2007 when attorney Fiona McAleenan informed him that the signature willfully is hers, in connection with the application for a loan of 3.7 million euros, not hers.

Mr Lynn is on trial at Dublin Circuit Criminal Court accused of the theft of some 27 million euros from seven financial institutions.

Mr Lynn, of Millbrook Court, Red Cross, Co Wicklow, pleaded not guilty to 21 counts of burglary in Dublin between 23 October 2006 and 20 April 2007.

It was the prosecution’s case that Mr. Lynn took out multiple mortgages on the same property in a situation where the banks were unaware that other institutions were also providing financing.

Relevant financial institutions include the Bank of Ireland Mortgage Bank, Danske Bank, Life and Permanent Ireland, Ulster Bank, ACC Bank PLC, Bank of Scotland Ireland Ltd and National Building Association Ireland (INBS).

Giving evidence today, Cathal MacCarthy, formerly the legal director of the TSB permanent group, told Karl Finnegan BL, who was indicted, that in May 2007, Mr. Lynn had filed an application with the bank. to borrow € 3,725,625 to buy 12 properties.

Mr. MacCarthy said the loan security Mr. Lynn offered was the first legal fee on the property. He said Mr. Lynn signed a letter of approval for the loan in June 2007, which included a special condition for the first legal fee on the property.

He said the bank received a purported commitment letter signed by attorney Fiona McAleenan and said she had the borrower’s irrevocable right to deliver this undertaking.

Mr MacCarthy said that from that pledge, he believes that for the loan to be made available, Mr. Lynn will sign the mortgage deed, giving the bank the first legal fee on all properties for that loan.

He said that the title deeds will then be duly registered and then sent to the bank along with the title deed, confirming that it is first legally valid for the funds. Mortgage.

Mr MacCarthy said he then checked with the land registry and deed registries to make sure the first legal mortgage was in the bank’s favor. He said he said Mr Lynn was not the registered owner of the properties and there were no valid legal fees charged to banks for the properties.

He said the bank would “absolutely” not upgrade the €3.7 million facility if this knowledge had been available to him at the time.

Mr. MacCarthy said that in October 2007 he received an email from Ms McAleenan stating that regarding the pledge relating to 3.7 million euros, the signature on the pledge purported to be hers is not must be her signature.

He agreed with the prosecution’s attorney that this had “set off alarm bells”, but said it was not the first indication of the problem they had.

Paul Comiskey O’Keeffe BL, defending Mr. Lynn, told the court that Mr. Lynn accepted the signature was not Ms. McAleenan’s. He said it was her client’s view that it was customary and customary for her to allow her signature to be used “on all types of documents” including pledges.

Mr MacCarthy told the prosecution’s lawyer that the 3.7 million euros that had been forwarded would never be refunded.

The trial continues before the jury on Friday. Michael Lynn trial: Lawyer says signature on pledge letter for €3.7m loan is not hers

Fry Electronics Team

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