A solicitor who worked in Michael Lynn's legal practice has told his multi-million euro theft trial that she was never a partner in the practice.
Mr Lynn (55), of Millbrook Court, Redcross, Co Wicklow is on trial accused of the theft of around €27 million from seven financial institutions. He has pleaded not guilty to 21 counts of theft in Dublin between October 23rd, 2006 and April 20th, 2007.
It is the prosecution’s case that Mr Lynn obtained multiple mortgages on the same properties, in a situation where banks were unaware that other institutions were also providing finance.
The financial institutions involved are Bank of Ireland, National Irish Bank (later known as Danske Bank), Irish Life and Permanent, Ulster Bank, ACC Bank, Bank of Scotland Ireland, and Irish Nationwide Building Society (INBS).
Fiona McAleenan, who worked as a solicitor in Michael Lynn and Co, told Karl Finnegan SC, prosecuting, on Thursday that following High Court proceedings, she was found not to be a partner in the practice.
She said she took legal action against AIG, the practice's insurance company, as they had “refused to indemnify her”. She also noted that various banks issued legal proceedings against her.
Ms McAleenan told Paul Comiskey O'Keeffe BL, defending, that she was never a partner in the practice, but there had been negotiations about her becoming a partner.
She said she “did not dispute” an email being sent to staff announcing the partnership while negotiations were ongoing. She said the discussion was at an “advanced” stage, and she believed she was going to become a partner, but was ultimately advised not to proceed.
She accepted that “in hindsight”, she should not have consented when asked by Mr Lynn.
Ms McAleenan agreed with Mr Comiskey O'Keeffe that she told the Law Society she was a partner in the practice at Mr Lynn's request.
Mr Comiskey O'Keeffe put it to her that she also signed letters of undertaking as a partner. She said these documents were completed by former Michael Lynn and Co. legal executive Liz Doyle.
She said Ms Doyle would bring in letters of undertaking for her to sign with the required page open, then turn to the next page she was required to sign.
“I didn’t see myself as guard that I should have to inspect undertakings”, she said.
She said there was “always pressure” and she didn't pay a “huge amount of attention” to the solicitors' undertakings that Ms Doyle brought her to sign.
She told Mr Comiskey O'Keeffe that she trusted Ms Doyle and Mr Lynn.
Mr Comiskey O'Keeffe suggested to Ms McAleenan that while this process may have been standard, it was not considered best practice by the Law Society.
The Law Society carried out thorough investigation into the activities in [the practice]. They were aware I signed undertakings... They did not make findings against me, and did not ask me to attend disciplinary meetings”.
Ms McAleenan was taken through a mix of documents, including solicitors' letters of undertaking, emails and letters during her direct evidence.
She agreed with Mr Finnegan that she had not signed a number of these solicitor's undertakings, and it was not her signature on these documents. She said it was her view that it was Ms Doyle's handwriting.
Ms McAleenan said she had not given Ms Doyle or anyone else permission to sign on her behalf.
She said she recognised her signature on several letters of undertaking but did not recall the specific signing of it. She said the rest of these documents had been completed by Ms Doyle.
Ms McAleenan said she was asked by Ms Doyle and others in the practice to sign letters of undertaking, but had no further involvement with these conveyancing files.
She told Mr Comiskey O'Keeffe during cross-examination that she would sign the letters of undertaking, but “all necessary work was carried out by the person dealing with conveyancing file, and I was entitled to accept that”.
She said Ms Doyle dealt with conveyancing on behalf of Mr Lynn.
When shown a letter with the header “Fiona McAleenan Solicitor” during her direct evidence earlier today/yesterday (THURS), Ms McAleenan replied, “no firm ever existed” in that name.
“I was never a sole practitioner”.
She was shown an email to Orla Deignan, former assistant business banking manager for National Irish Bank, in February 2007, which stated Fiona McAleenan was a partner in Michael Lynn and Co solicitors and was in a position to act independently.
Ms McAleenan said she did not send the email. “It did not come from me”.
She added. “I wasn’t acting for Mr Lynn in relation to the purchase of these properties. I had no involvement”.
She suggested that someone else may have used her account to send the email, as her computer was left on when she was at lunch or in court. “It would have been very simple for someone to send that email”.
Mr Finnegan outlined evidence from Michael O'Malley, former senior legal adviser for National Irish Bank, earlier in the trial that he received a phone call from a woman who introduced herself as Fiona McAleenan from Michael Lynn & Co in February 2007.
Ms McAleenan said she never had any dealings with Mr O'Malley. “All I could say somebody had a conversation with Mr O'Malley. That was not me.”
She said she saw “correspondence come into the office that concerned me” in late 2007.
Mr Comiskey O'Keeffe put to Ms McAleenan that Ms Doyle had been given authority to sign her name and did so with her “consent and knowledge”. Ms McAleenan denied this.
The trial continues before Judge Martin Nolan and the jury.
