Solicitor dealings leave bank worried

THE Head of Lending with IIB Bank has told the High Court of concerns about title documents to a number of properties, including residential properties, in relation to which solicitor Thomas A Byrne had dealings.

Mr Barry Kealy said he had particular concerns about title documents in relation to a house in Clondalkin, Dublin, which was purchased by a couple who were clients of Mr Byrne. That property was now registered in the name of Mr Byrne but was in fact mortgaged by the couple to IIB Homeloans, IIB having advanced some €335,000 to be secured on a mortgage on that house.

An undertaking by Mr Byrne to produce a set of title deeds to IIB Homeloans remains outstanding, Mr Kealy said.

Mr Kealy said he also had concerns about the title to a house in Ballsbridge, Dublin 4. The deed relating to that property was stamped on a date in September last and purported to be a deed from a named man, Mr A, to Thomas Byrne.

However, Mr A denied either executing such a deed or the transfer of the property to Mr Byrne.

Mr Kealy said the property in question was in fact owned by Ms B, partner of Mr A, both of whom were clients of Mr Byrne’s firm, Thomas Byrne & Company, which had acted on Ms B’s behalf in relation to purchase of the property.

In an affidavit, Ms B had said she became the sole owner of the property in 2004 and had funded its purchase in part by a €730,000 loan over 20 years in favour of Bank of Scotland Ireland Ltd.

She said she had never executed any document whatsoever in relation to the transfer of her legal or beneficial interest in the property to Mr Byrne.

Earlier in his affidavit, Mr Kealy said IIB Bank plc had issued loan approval of €9 million to Mr Byrne on August 8, 2007, which was to be used by Mr Byrne for further investment purposes. Mr Byrne had offered to provide security in the form of a first legal mortgage over some 20 properties, including 16 residential properties.

Mr Kealy said solicitors BCM Hanby Wallace (BCMHW) were appointed to oversee the implementation of the security requirements to enable draw-down of the loan. The firm had corresponded with Mr Byrne’s company in that regard. Certificates of title were prepared by Mr Byrne’s firm and searches arranged, and draw-down of the loan occurred at the offices of BCMHW on September 7 last.

He said searches on title revealed a number of the properties were the subject of a prior mortgage in favour of other banks. Mr Byrne had, on September 7, given letters of undertaking to BCMHW relating to discharging those charges.

Mr Gerard Butler of BCMHW eventually contacted the Law Society and was told it was carrying out an audit of Mr Byrne’s office, having informed him of its intention to do so. Mr Butler was told Mr Byrne had not shown up at the office that day.

In the circumstances, Mr Kealy said he was concerned the security offered by Mr Byrne must “seriously be questioned”.