Former solicitor and property developer Michael Lynn's financial affairs were “an open book”, his multi-million euro theft trial has heard.
Mr Lynn (55), of Millbrook Court, Redcross, Co Wicklow is on trial at Dublin Circuit Criminal Court 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, Irish Life and Permanent, Ulster Bank, ACC Bank, Bank of Scotland Ireland, and Irish Nationwide Building Society (INBS).
John Kinsella, of accountancy firm Kinsella Mitchell & Associates returned to court today/yesterday (TUES) to be cross-examined by defence counsel.
The court has heard that Mr Kinsella was partner in the firm which acted as independent auditors for Mr Lynn's property development company – Kendar Holdings Limited - and as accountants for his legal practise, Michael Lynn & Co solicitors.
Statements
Mr Kinsella was previously brought through a number of statements of affairs given to banks in relation to Mr Lynn's loans which he agreed were not from his firm and which were “forgeries”.
Under cross-examination from Paul Comiskey O'Keeffe BL, defending Mr Lynn on Tuesday, Mr Kinsella agreed that Mr Lynn had a “favourable” relationship with the banks and was never refused a loan.
He said he did not think he ever received a phone call from a bank checking up on a statement of affairs, saying “back then” this was not done so much, but that it happens more often now.
When asked if he ever advised a solicitor at the practice – Fiona McAleenan – to not become a partner in Michael Lynn & Co Solicitors, Mr Kinsella said no.
He said he told her to “be aware that Michael was more involved in property development and less and less involved in the practice”.
The court heard that Kendar was audited by Revenue for the year ending December 2006 and Mr Kinsella was one of a team who worked on preparing for this.
The court was shown documents from July 2007, in which Mr Kinsella wrote to Mr Lynn expressing his concern about the accuracy of the account records, including a number of transactions which he said were not reflected in the account records. These included Bank of Scotland and Anglo Irish bank accounts with “substantial transactions”, the court heard.
Transactions
Mr Kinsella wrote to Mr Lynn saying that the absence of these transactions from the trial balance (which the court heard was a precursor balance sheet) “calls into question whether the financial position of the company can be accurately ascertained from the accounting records and by implication, whether proper books and records are being maintained.”
Mr Kinsella asked Mr Lynn to get back to him on this, but the court heard that before anything was done, the Law Society became involved in Mr Lynn's affairs. The trial has heard his accounts were frozen by the High Court in October 2007.
Mr Kinsella agreed with defence counsel that during the period the jury has to consider, he was authorised to access Mr Lynn's financial records from the bank. When prosecution counsel pointed out that this was in relation to Kendar Holdings Ltd, Mr Comiskey O'Keeffe asked Mr Kinsella if he had access to banks and records in relation to Michael Lynn & Co Solicitors.
“Yes, I would think so, yes,” Mr Kinsella replied.
Mr Comiskey O'Keeffe later put to Mr Kinsella that “Mr Lynn's financial affairs were an open book” and that people within Kendar had access to his accounts. “Yes,” Mr Kinsella replied.
The trial continues before Judge Martin Nolan and the jury.
