A former solicitor from Michael Lynn's practice has denied she was aware of Mr Lynn's bank borrowings, saying she had nothing to do with money in the practice.
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).
The trial resumed on Monday after a break of four days last week, with former solicitor from his practice, Fiona McAleenan, returning to the stand for a fourth day.
Paul Comiskey O'Keeffe BL, defending Mr Lynn, showed the court a memo sent to staff at Michael Lynn & Co in October 2006 announcing that Ms McAleenan had been appointed partner of the practice.
“As I said before, I believed I was going to become a partner in the practice,” Ms McAleenan said. “I can't put it any further than that, and I've said so on numerous occasions.”
Defence counsel put it to Ms McAleenan that that has been her position “since you sought to compel your insurance to provide indemnity cover”.
“It's been my position since I left the practice and before that,” she replied. “I was never a partner.” Ms McAleenan added that she had “made mistakes, but I was not a partner in the practice.”
When asked about an exchange of text messages from Liz Doyle, the office manager, requesting that Ms McAleenan carry out bank transfers, Ms McAleenan denied that she was involved in any bank transfers. “I was not familiar with transfers, I was not aware of the lending,” she said.
Mr Comiskey O'Keeffe put it to Ms McAleenan: “Your position is that Liz Doyle and Michael Lynn are in a league together, committing a fraud upon you, keeping you in the dark about this.”
“I had no involvement in any of the monies, any of these transfers,” Ms McAleenan replied.
“I put it to you that you were aware of Michael Lynn's borrowings from the bank, you were aware from the drawdown of monies coming in and the transfer of monies out to the beneft of Kendar, where these monies were being used,” Mr Comiskey O'Keeffe said.
“No, that's not correct,” Ms McAleenan replied. “I was involved in giving undertakings. I had no knowledge of amounts, monies, transfers or any other aspect.”
Under re-examination from prosecution counsel, Karl Finnegan SC, Ms McAleenan agreed that the High Court found that she was not a partner in Michael Lynn & Co and had never been a partner.
She agreed the High Court judge thought it was “careless” that she had held herself out as partner in some of the documents. Ms McAleenan agreed she had expected to become partner and said the discussions were “quite advanced”.
The court heard that when the Law Society investigated the practice, Mr Lynn was struck off the roll of solicitors. Ms McAleenan was never sanctioned nor had any disciplinary proceedings brought against her, the court heard.
Ms McAleenan's evidence finished on Monday, with Judge Nolan thanking her for her attendance. “Hopefully we won't see you again,” he quipped.
The trial continues before Judge Nolan and the jury.
