The legal title of a number of residential homes in relation to which a Dublin solicitor had dealings appears to be cast in doubt by information put before the High Court by IIB Bank plc.
If there is doubt over title, that could have implications for the ability of those concerned to sell their properties.
The whereabouts of the solicitor, Thomas A Byrne, are unknown, the court was told yesterday. Mr Byrne's practice at Walkinstown Road, Dublin 12, was closed this week by the Law Society; his accounts have been frozen; and he is restrained by court order from reducing his assets below €9 million.
Mr Byrne had been informed by the Law Society on Friday, October 19th, that it would be carrying out an audit of his practice last Monday and he had failed to turn up at his office that day, the court also heard.
In affidavits to the court, IIB has expressed concerns that a loan of €9 million paid by it to Mr Byrne was secured on a number of properties that in fact were the subject of a prior mortgage with other banks.
It also said it had concerns about title documents to some properties, and particular concerns relating to a house in Ballsbridge and a house in Clondalkin, both residential properties.
The loan was secured on 16 residential properties located in Ballsbridge, Walkinstown and Crumlin in Dublin; Clondalkin, Balrothery and Skerries, Co Dublin; and Co Carlow. It was also secured on non-residential properties in Saggart, Co Dublin; Crumlin and Ballymount.
The bank said it had learned that Mr Byrne had taken out prior mortgages with other banks relating to the same properties on which the IIB loan is secured. The other banks are Bank of Scotland Ireland, which was represented in court yesterday, ICS Building Society, Anglo Irish Bank and Ulster Bank.
Mr Byrne failed to turn up and was not legally represented when IIB succeeded yesterday in an application to continue freezing orders against him. IIB also secured an order directing National Irish Bank to discover by Tuesday next all documents relating to accounts held by Mr Byrne or associated companies.
IIB has expressed concern that, given Mr Byrne's conduct to date, the €9 million loaned by it to him appeared to have been fraudulently obtained. In affidavits, the bank also expressed concern that Mr Byrne would dissipate his assets "whatever assets are in his name which appear to be his own" with a view "to defrauding" the bank.
Last Monday, IIB Bank secured an interim order against Mr Byrne restraining him from reducing his assets below €9 million and also freezing bank accounts in his name. A notice from the Law Society on the door of the solicitor's offices in Walkinstown on Monday stated the practice was now closed. Mr Byrne also has an office in Sandyford Industrial Estate.
The Law Society on Tuesday initiated proceedings against Mr Byrne, also on an ex parte basis. However, on the application of the society, those proceedings were heard in private.
Mr Byrne was found guilty of misconduct by the society in December 2006 for allowing a deficit of almost €1.7 million on his client account as of May 31st, 2005, and for allowing personal transactions of his own to be drawn from the client bank account.
The court was told that Mr Byrne was censured by the society and ordered to pay €15,000 to its compensation fund, the maximum amount which may be imposed. When the IIB proceedings against Mr Byrne came before Ms Justice Laffoy yesterday, Mr Byrne's name was called but he was not present.
