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 Post subject: Michael Lynn - The Irish Casey Serin Strikes!
PostPosted: Sat Oct 13, 2007 12:02 pm 
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Of Systemic Importance

Joined: Feb 8, 2007
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Casey Serin is a notorious American chap who racked up over $2.2 million in mortgage debt and ended up having all his entire investment portfolio repossessed. Wikipedia entry for him here http://en.wikipedia.org/wiki/Casey_Serin

Quote:
A HIGH-PROFILE solicitor involved in an alleged €30m mortgage fraud has fled the country.

The Irish Independent has learned that the solicitor, a property specialist who holds directorships of several companies, has also had a freezing order issued against him amid concerns that his clients' funds may be at risk.

Up to four major banks are affected by the alleged fraud in what is being regarded as the greatest legal scandal since former 'Irish Press' solicitor Elio Malocco was struck off for misappropriating almost IR£500,000 (€634,869) from his clients.

It is claimed that the solicitor re-mortgaged his entire property portfolio with each individual bank without telling them that his properties were already mortgaged.

It is understood that the properties were re-mortgaged with each bank at a grossly overvalued rate and the solicitor, who cannot be named for legal reasons, then drew down the funds before fleeing to Portugal.

Earlier this week, the Law Society, the governing body for solicitors, secured an injunction in the High Court preventing the man from disposing of his assets and taking them out of the country.

Although the banks involved face the greatest exposure, the Law Society secured the freezing order to protect his clients' accounts.

The injunction was granted by Mr Justice Richard Johnston, the President of the High Court, and is listed for hearing again on Monday.

However, the entire case will be heard in camera, with the public and media excluded from the hearing, leaving anxious investors and clients in the dark.

Clients of the solicitor are furious that the injunction was sought in secret when their accounts are potentially at risk.

Companies with whom the solicitor was involved and fellow directors are also concerned that their businesses will be adversely affected.

The Mareva injunction, a civil remedy normally sought in open court proceedings, was secured under the Solicitors Acts which enjoys the benefit of the In Camera rule.

But the matter dramatically came into the public domain yesterday when a soldier, who was being represented by the solicitor in an army deafness action, had his High Court personal injuries case adjourned.

Another solicitor sought to represent the soldier, claiming that he had power of attorney to continue the case in his colleague's absence, but this application, too, was adjourned until next week.

It is claimed that the solicitor, a married man who lives in an exclusive Dublin suburb and has an "extensive" property portfolio, overvalued the properties, allowing him to draw down funds up to three times what each property was actually worth.

The man, who has a successful commercial, conveyancing and litigation practice, is regulated by the Law Society of Ireland who refused to comment on the affair.

Last night, colleagues of the solicitor expressed shock at the alleged fraud, which only recently came to light. They described him as an ambitious lawyer and businessman with "a brilliant mind".

How could the bankers be so fecking stupid as to allow a property to be remortgaged twice :shock:


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 Post subject:
PostPosted: Sat Oct 13, 2007 12:12 pm 
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It does not sound like brilliance to me , its quite a simple fraud from the sound of it...allegedly that is :)


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 Post subject:
PostPosted: Sat Oct 13, 2007 12:18 pm 
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Property Magnate

Joined: Jun 16, 2007
Posts: 569
Quote:
However, the entire case will be heard in camera, with the public and media excluded from the hearing, leaving anxious investors and clients in the dark.
Nice to see the courts colluding with the Law Society to hush this up, clearly the legal system knows what its priorities are in this case.


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 Post subject:
PostPosted: Sat Oct 13, 2007 1:48 pm 
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this is the kind of nu-perfect ireland poster child the meeja would have praised to the rafters.

Ellio Malocco was just the beginning ;)

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 Post subject:
PostPosted: Sat Oct 13, 2007 2:16 pm 
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I wonder why this fleet-footed fellow chose to depart our shores at this juncture; without so much as a going away party?. Does he know something we don't? Whatever the reason may I be the first to wish him every success in his new venture. :?

******NEWSFLASH******

This photograph just in of the gentleman in question attempting to cross the frontier between Spain and Portugal.

Image


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 Post subject:
PostPosted: Sun Oct 14, 2007 9:41 am 
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Some more details on this fellow, from the Sindo

€30m property crisis lawyer has not 'absconded'

Quote:
Lynn due to meet with anxious bankers in Ireland in hopes of staving off empire collapse

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Go Sunday October 14 2007


The solicitor at the centre of a €30m property crisis says he has not "absconded" and is preparing to return to Ireland.


An assurance was given yesterday by a high-profile Dublin solicitor speaking on his behalf that he "will be available" to meet bankers and lawyers in Ireland this week.

Michael Lynn, a solicitor and property developer, is now trying to stave off the collapse of his international property empire.

Mr Lynn, a high-flyer in the property world in Ireland and abroad, is believed to have borrowed up to €80m to invest in property. But leading financial institutions are looking to secure up to €30m -- in the belief that Mayo-born Mr Lynn re-mortgaged many of the properties in his portfolio with different lenders to expand his business.

Yesterday, a solicitor acting on his behalf said "he has not absconded -- that is completely wrong."

He said that Mr Lynn's "main concern" now is to return to Ireland. "He says he has enough assets to go around and there will not be a problem -- I don't know, but he has assured me that he is coming back to face all this."

It is believed that the Irish Nationwide Building Society and the Permanent TSB are owed about €10m each. Other institutions like AIB and Anglo-Irish Bank are also believed to have lent him considerable sums.

The way the crisis has unfolded will lead to concern among those who have paid deposits on overseas property but not yet secured the title.

Mr Lynn is believed to have been in Portugal, where he has extensive property holdings, for the last two weeks. He did not answer his mobile phone yesterday, but in response to a text message the head of a large and reputable Dublin firm of solicitors rang the Sunday Independent to categorically state that Mr Lynn has not "absconded".

Last year, one of Mr Lynn's property companies gave away a €100,000 apartment in Bulgaria on the Late Late Show as part of a promotion. He also used the services of high-profile footballers in Ireland and Portugal to promote his ventures.

Mr Lynn has used a string of apartments and commercial properties in Dublin city centre to raise multiple mortgages from different lending institutions and then used the money to invest in overseas property in Portugal and European locations.

A combination of slow sales and rising interest rates have precipitated the current crisis. Last June his brother-in-law Cathal Power resigned as a director of Mr Lynn's main property companies.

There is now serious concern in business and legal circles that the practice of securing multiple mortgages on the same properties may lead to further turmoil in the property sector. According to banking sources there is now serious concern among lenders that up to five major property investors may have engaged in the same business practices.

Mr Lynn, who comes originally from Co Mayo, is a 39-year-old solicitor. He got married last year at a lavish ceremony. Earlier this year he moved into a €5m house in Howth, Co Dublin. In the last four years he has diversified from his legal business to property investments.

According to documents given to prospective buyers, his law firm is regulated by the Law Society of Ireland.



http://www.independent.ie/national-news ... 66531.html

And if it wasn't for you pesky FTBs he would have got away with it.


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 Post subject:
PostPosted: Sun Oct 14, 2007 12:07 pm 
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Also from that Sindo article:

Quote:
He got married last year at a lavish ceremony. Earlier this year he moved into a €5m house in Howth, Co Dublin.

Looks like he was still living the high life after the downturn already started. He must have thought it was a temporary blip.


Now hes having trouble unwinding his positions, and cant make his mortgage payments.
Quote:
A combination of slow sales and rising interest rates have precipitated the current crisis.


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 Post subject:
PostPosted: Sun Oct 14, 2007 12:11 pm 
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Single Home Owner

Joined: Aug 19, 2007
Posts: 142
Location: The Puerto Rico of Europe
Quote:
There is now serious concern in business and legal circles that the practice of securing multiple mortgages on the same properties may lead to further turmoil in the property sector. According to banking sources there is now serious concern among lenders that up to five major property investors may have engaged in the same business practices.


Sounds like these big savvy investors were using second mortgages to make the payments on the first mortgage. Thats real Casey Serin stuff.

I wonder how the banks are going to go about liquidating this guys properties. Sell them all in one auction with a low reserve or try to sell them one by one at conventional prices.


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 Post subject:
PostPosted: Sun Oct 14, 2007 12:20 pm 
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Yes, there is more of this out there. This is classic behaviour at the end of every boom, the fraud and bad lending decisions are exposed. The banks must now increase their bad debt provisions (They had been reducing them over the past few years of the boom), this means less money to lend and higher interest rates for borrowers.

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 Post subject:
PostPosted: Sun Oct 14, 2007 12:25 pm 
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Duplex wrote:
I wonder why this fleet-footed fellow chose to depart our shores at this juncture; without so much as a going away party?. Does he know something we don't? Whatever the reason may I be the first to wish him every success in his new venture. :?

******NEWSFLASH******

This photograph just in of the gentleman in question attempting to cross the frontier between Spain and Portugal.

Image


You know it s posts like the above that keep me coming back to this site lolololololol
:D
haha the "frontier" LOL :lol:


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 Post subject:
PostPosted: Sun Oct 14, 2007 3:23 pm 
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And some more from the Sunday Business Post

Solicitor due in High Court over mortgage fraud allegations

Quote:
The solicitor and property developer at the centre of allegations of a major mortgage fraud is due to appear before the president of the High Court tomorrow in a hearing relating to the freezing of his assets.

The Law Society is understood to have obtained the freezing order last week, following an investigation. There was no answer at the solicitor’s South Dublin home yesterday and all the curtains were drawn.

Neighbours said a removal van had taken away much of the furniture last Thursday and that the solicitor, who cannot be named for legal reasons, had not been seen since. The firm’s Dublin office was closed the same day. They described the solicitor, who is a high profile figure, as ‘‘flamboyant’’ and ‘‘chatty’’.




The solicitor is also a significant player in selling overseas property to Irish clients through a separate company.

He has an extensive personal property portfolio in Ireland and overseas and is understood to have taken out multiple mortgages on a number of properties with a range of Irish banks. The precise sum of money involved is not clear but is estimated to be in excess of €25 million and possibly as much as €40 million.

It is understood that a colleague of the solicitor’s recently raised the alarm with the Law Society, having become concerned about some of his dealings. Following an investigation, the Law Society is understood to have sought and obtained an ex parte injunction freezing the firm’s assets.

The matter is to be heard before the High Court tomorrow. The solicitor’s overseas property firm sells apartments and villas in eastern and southern Europe.

A spokeswoman for the Law Society, which is responsible for regulating the solicitors’ profession, said: ‘‘The Law Society is prohibited by court order from making any comment in relation to this matter at this stage.”

A number of people connected to the company refused to comment when contacted. One former associate of the company told The Sunday Business Post: ‘‘I spoke to some other guys this morning and they highlighted what has happened. The Law Society moved in some time ago after finding something that triggered it off. It was something to do with a double mortgage. It seems to be a bit of a mess.”

The well-established overseas property company run by the solicitor has taken a high profile approach to selling properties to Irish investors, selling hundreds of apartments and villas across Europe. It is not clear whether there is any risk to client funds.

The solicitor was believed to be in Portugal last Friday. Financial sources said that mortgages had been taken out with a number of the main banks, with multiple mortgages on a number of properties owned by the solicitor.

The whistle was blown by one of the colleagues of the solicitor, who is believed to have unwittingly signed some of the documents.


http://www.sbpost.ie/post/pages/p/story ... qqqx=1.asp


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 Post subject:
PostPosted: Mon Oct 15, 2007 7:09 am 
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Quote:
The €30m losses incurred by a series of Irish banks in an alleged mortgage fraud involving a solicitor are unlikely to be recovered.
And an industry-wide audit of bank loans to property developers and big-money clients is to be carried out amid fears that these people have raised multiple mortgages on their properties to finance risky investments.
The Irish Independent has learned that claims made against the €40m solicitor's Compensation Fund, administered by the Law Society to assist any client defrauded by solicitors, are capped at €350,000 per client -- including banks.
This is a fraction of the €10m owed to at least two individual banks in the alleged mortgage fraud revealed by the Irish Independent last Saturday.
>>>>

Banks face €30m 'fraud' loss
http://www.independent.ie/business/iris ... 66825.html

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 Post subject:
PostPosted: Mon Oct 15, 2007 9:25 am 
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Won't somebody think of the poor banks?!?!


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 Post subject:
PostPosted: Mon Oct 15, 2007 11:13 am 
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Posts: 2918
Quote:
Although the banks involved face the greatest exposure, the Law Society -- which was undertaking an investigation into the solicitor's practice when another colleague "blew the whistle" on alleged irregularities in a range of mortgages he had taken out -- obtained an ex parte injunction to protect the funds held in his client accounts.


I blame the pesky whistle blower. If your man had keep his whistle in his pocket things would have been grand. Btw do the Law Society issue whistles to members or do they have to source them themselves? I wonder if these whistles are the same as the ones used by ref's? Or are they special whistles that emit a sound at a pitch that can only be heard by other solicitors? I think we need to know. 8)


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 Post subject:
PostPosted: Mon Oct 15, 2007 11:19 am 
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Location: South of the Border
Maybe it was the whistle planted on Dougal in that episode of Fr Ted.
This whole thing has a certain comedic content.
And of course we all remember Teds great line
"The money was only resting in my account."
Ok party game for a Monday,which economists do the following characters
remind you of.
Fr Ted, Fr Jack, Fr Dougal, Bishop Brennan


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