Solicitor due in High Court over mortgage fraud allegations
Sunday, October 14, 2007By Kieron Wood, Richard Curran and Nicola Cooke
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.
