The jury had been deliberating for six-and-a-half hours across two days after an eight-week trial.
Sentencing date
Judge Martin Nolan remanded him in custody after the verdicts were handed down. He set a sentencing date of 15 January next.
Lynn, of Millbrook Court, Redcross, Co Wicklow, had pleaded not guilty to 21 counts of theft in Dublin between 23 October 2006 and 20 April 2007, when he was working as a solicitor and property developer.
It was the second trial in the case, after the jury in the first trial last year was unable to agree on the verdicts.
Banks unaware
It was the prosecution case that Lynn obtained multiple mortgages on the same properties in a situation where banks were unaware that other institutions were also providing finance.
These properties included 'Glenlion', Lynn's €5.5 million home in Howth, and multiple investment properties.
The financial institutions involved were Bank of Ireland, National Irish Bank, Irish Life and Permanent, Ulster Bank, ACCBank, Bank of Scotland Ireland Ltd, and Irish Nationwide Building Society.
Lynn had told his trial that the banks were aware that he had multiple loans on the same properties, and that this was custom and practice among bankers in Celtic Tiger Ireland.
Jury unable to reach verdict on BoI
The guilty verdicts returned by the jury related to Irish Nationwide, National Irish Bank, Irish Life and Permanent, Ulster Bank, ACCBank, and Bank of Scotland.
The jury was unable to reach a verdict on the single count relating to Bank of Ireland, alleging that Lynn stole €2.7 million from that bank.
It was also unable to reach verdicts on ten counts in relation to Irish Nationwide – including the allegation that Lynn stole €4.1 million from this financial institution in April 2007. The charge the jury convicted Lynn on in relation to Irish Nationwide related to a single count of stealing €508,000 in January 2007.
Lynn had told the court that he had “off-the-books” agreements with the banks to use the loan money for his property developments abroad. He said that, in relation to Irish Nationwide, he signed a “memo of understanding” with bank chief Michael Fingleton in a Dublin hotel in 2006.
He added that the agreement involved Irish Nationwide providing funding for Lynn's apartment development in Portugal, with Fingleton set to benefit personally from this arrangement.
Internal emails
In relation to Bank of Ireland, the defence had referred to internal emails from this bank querying Lynn's undertaking-only mortgages with the bank back in 2004, and suggesting that Lynn be referred to the Law Society of Ireland.
Paul Comiskey O'Keeffe BL, defending, had said that this was evidence of the business model that the banks were operating.
The court heard from dozens of witnesses – many of them bank officials who testified that they would never have lent the money to Lynn if they had been aware that he had already taken out mortgages on the same property, and were not aware of any “off-the-book arrangements” in relation to his lending.
Lynn's former legal executive, Liz Doyle, had told the trial that she had signed his signature and forged the signature of a solicitor in the firm, Fiona McAleenan, on loan documents under Lynn's instructions. She said that she had not discussed this with McAleenan.
McAleenan took the stand and repeatedly denied being involved in conveyancing in the practice. She said that she was not aware that Doyle was forging her signature, and that she was not aware of Lynn's loans.
Assets frozen
The allegations first came to light in September 2007, when McAleenan alerted the Law Society to irregularities in the practice. Lynn's assets were frozen and he went to London, then Portugal, and eventually Brazil, where he was arrested in 2013.
He was struck off the Roll of Solicitors in 2008 after an investigation by the Law Society.
Lynn gave evidence of his four-and-a-half years in a Brazilian prison prior to his extradition in 2018, describing how the prison was essentially run by inmates, and like something out of 'Game of Thrones'.
‘A risk-taker'
In his closing speech to the jury last week, Karl Finnegan SC, prosecuting, said that Lynn was a gambler and a risk-taker who had tried to pull the wool over the banks' eyes.
“He should not be allowed to pull the wool over your eyes,” Finnegan said.
“I think Mr Lynn is a risk-taker,” he added. “It's clear he lived for the next big deal … He is still gambling but the gamble has changed. The gamble is [that] you might accept his version of events.”
Finnegan said that there might be a suggestion that the banks had been “shoddy, careless, reckless”.
“It doesn't matter,” he said, noting that if someone left their front door open and their jewellery were stolen, “they were careless, but it is still theft”.
Outlining the legal definition of theft, Finnegan said that it did not have to be permanent, and could be temporary.
“I have no doubt Mr Lynn wasn't planning on taking €27 million and sailing into the sunset with it and disappearing. He probably was going to pay it back, but he got caught out,” said Finnegan.
Defence's closing speech
In his closing speech to the jury, Comiskey O'Keeffe, defending, said that the jury's decision would affect the balance of Lynn's life. “That underlines the seriousness and solemnity of the decision you have to make,” he said.
He said that Lynn's defence was that, in respect of Irish Nationwide, there was a profit-sharing agreement with Fingleton, while the other banks were aware of the purpose of Lynn's borrowings.
“If you accept the banks were aware, then there's no theft,” Comiskey O'Keeffe said. “Theft requires deception.”
The court had heard evidence that Lynn engaged in these lending arrangements with the banks outside of the period that the jury had to consider.
'Bizarre'
“What's bizarre about these seven distinct banks is that not one of them ever sent a letter of demand seeking compliance with an undertaking,” Comiskey O’Keeffe said.
“[Mr Lynn] has never registered a mortgage in favour of any bank. This was the business model, the custom and practice that developed. You can't account for this unique similarity between these seven financial institutions without seeing Mr Lynn as a common thread between them all,” he stated.
In his charge to the jury, Judge Martin Nolan had said that many people “weren't very fond” of the banks during the time period involved, noting that their “reckless behaviour” had brought the country into a bad state. But he said that the jury must put aside any prejudice or sympathy in its deliberations.