Bulgaria-Linked Irish Property High-Flyer Gets Clients into Court Troubles
A couple who were clients of Michael Lynn, a controversial Irish solicitor and property developer with huge investments in Bulgaria, are facing a legal action by a bank.
Aer Corps officer John Mulkearns and his wife Lorna Farrell, of Iona Road, Glasnevin, Dublin, are being asked to repay loans of more than EUR 2 M which the Bank of Ireland Mortgage Bank claims it was told were to clear several existing mortgages with other banks, the Irish Independent daily reported.
The loans were also needed to repay Lynn EUR 200, 000 and to buy five properties in Bulgaria from Lynn's company, Kendar Holdings Ltd.
Bank of Ireland Mortgage Bank claims it made a loan offer to the couple in February 2006 of some EUR 2 M and that the couple drew down the monies in March 2006.
The Bank said the mortgage loan offer was condition on a first legal charge being executed by the couple over six properties, the five already listed and a further property at 12 Griffith Drive, Glasnevin North, Dublin.
However, after seeing on November 15 last a schedule of properties in proceedings brought by the Law Society against Mr Lynn, the Bank had learned that, "wrongly and in breach of the mortgage loan agreement between the parties'', the defendants had failed to execute a first legal charge in favour of the bank over the six properties.
In light of that alleged failure, the bank claims the defendants are in breach of the mortgage loan agreement, have also failed to meet the agreed instalment repayments and are now indebted to the bank for some EUR 2, 047, 208, including interest.
Michael Lynn, whose arrest has been ordered by the High Court, has repeatedly failed to appear for questioning by the Law Society.
He was summoned before the High Court in Ireland at the end of October on charges that he used clients' money to purchase overseas property and draw down up to EUR 50 M in loans.
Lynn is alleged to have taken out multiple mortgages on several properties with a number of major Irish banks. His accounts have been frozen; he has been ordered to disclose a full list of his accounts and assets; and he has agreed not to practise.
Lynn's company Kendar Global Properties stepped on the Bulgarian property market earlier this year with the launch of the construction of a residential and vacation complex near the town of Razlog, close to the ski resort of Bansko.
The company announced plans for EUR 75 M of investments in apartments and real estate in Bulgaria by 2010.
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