In 2003, property developer Brian Cunningham and his wife Marian made a complaint to the Law Society after Lynn deducted professional fees of €817,747 from a sale deposit of €1.4 million held in a client account after a property sale at the Finglas Shopping Centre.
As part of its investigation, the Law Society probed six allegations made by the Cunninghams in relation to Lynn.
In addition to the professional fee deduction, the Cunninghams also claimed that Lynn had acted ‘‘negligently’’ in relation to the title of a property development at Salthill.
According to the Law Society report at the time: ‘‘First Active apparently had issued loans totalling IR£25 million but, because of the title problems, the site was now valued at only IR£15 million. The Cunninghams stated that they would be filing a claim of IR£10 million against the solicitor, the Law Society and the compensation fund.”
They also alleged that Lynn had acted negligently and recklessly in several other cases, and, that due to this negligence, they believed he was partially responsible for three of their companies going into receivership.
Despite all of this, the Law Society ‘‘came to the conclusion that the complaint made to the Society did not constitute grounds to warrant intervention,” according to Law Society documents.
In light of the recent evidence against Lynn, Cunningham and his wife have now issued a writ to recover €817,747 from the Finglas Shopping Centre sale.
Just what chance they have of getting back their money remains to be seen. More than a dozen banks are now owed in the region of €70million,while receivers have been appointed over various properties in Lynn’s portfolio - including his €5.5 mi l l ion home in Howth, Dublin. The house, which was mortgaged four times, is now on the market.
The High Court has also referred Lynn to the National Bureau of Fraud Investigation, and members of the fraud squad are taking statements from bank staff, Kendar staff and clients of Lynn.
The criminal investigation to determine whether documentation used to secure loans was forged or fraudulent may take months to complete. There will be a lot of people - from Kelly to Cunningham, and the hundreds of investors who backed Kendar Properties - eagerly awaiting the outcome of the investigation.