Solicitor Disciplinary Tribunal Decisions

Details for Thomas Byrne

Name

Thomas Byrne

Address

Thomas Byrne & Co, 78 Walkinstown Road, Dublin 12

Date of Order

16/06/2008

Decision

In the matter of Thomas Byrne, a solicitor formerly practising under the style and title of Thomas Byrne & Co at 78 Walkinstown Road, Dublin 12, and in the matter of the Solicitors Acts 1954-2002 [6095/DT60/06, 6095/DT36/08 and High Court record no 2008 no 52SA]

Law Society of Ireland (applicant)
Thomas Byrne (respondent solicitor)

On 20 February 2008, the Solicitors Disciplinary Tribunal found the respondent solicitor guilty of misconduct in his practice as a solicitor in that he:
1) Failed to comply in a timely manner or at all with undertakings given to Allied Irish Banks plc, and failed to do so despite repeated requests for compliance by the bank,
2) Failed in particular to perfect the bank’s security for the borrowings of his clients, in breach of the said undertakings,
3) Failed to furnish the bank with title documentation and/or mortgage deeds, in breach of the said undertakings,
4) Failed to furnish the bank with information regarding the perfection of the bank’s security, and in particular information relating to the execution and registration of mortgage charges under the terms of the said undertakings, and failed to provide such information despite repeated requests from the bank,
5) Furnished the bank with misleading and/or erroneous information relating to the said undertakings, and in particular in relation to the registration of mortgage charges,
6) Failed to comply with the direction of the Complaints and Client Relations Committee, as communicated to the respondent solicitor by letter of 28 July 2005, that he comply with the undertakings given to the bank,
7) Failed to comply with the direction of the Complaints and Client Relations Committee, as communicated to the respondent solicitor by letter of 28 July 2005, that he provide information relating to the undertakings given to the bank, as requested by the Law Society in its letter of 18 May 2005, by way of, in particular, a comprehensive response to the bank’s letter of 1 March 2005.

The tribunal ordered the Law Society to bring the report of the tribunal in respect of the respondent solicitor before the High Court, with recommendations that the respondent solicitor be struck off the Roll of Solicitors and pay the whole of the costs of the Law Society, to be taxed in default of agreement.

On 22 May 2008, the Solicitors Disciplinary Tribunal found the respondent solicitor guilty of misconduct in his practice as a solicitor in that he:
1) Fraudulently caused or permitted the signature of an assistant solicitor in his practice to be forged on an undertaking furnished to Irish Nationwide Building Society by his practice, dated 29 March 2007,
2) Fraudulently furnished/permitted to be furnished the said undertaking to Irish Nationwide Building Society, dated 29 March 2007, knowing that the signature thereon, which purported to be the signature of an assistant solicitor in his practice, had been forged,
3) Dishonestly obtained a loan for his own personal use and benefit from Irish Nationwide Building Society of in or about €4,545,000 on 30 March 2007 on foot of the said fraudulent undertaking furnished by him/his practice to the said building society, dated 29 March 2007, on his behalf as borrower, in circumstances where he caused or permitted the name of the signatory of the said undertaking to be forged,
4) Dishonestly represented to Irish Nationwide Building Society the authenticity of the said undertaking by furnishing the undertaking to them under cover of a letter dated 29 March 2007, signed by him, confirming that an assistant solicitor in his practice is an authorised signatory, in circumstances where he knew that the name of the purported authorised signatory of the said undertaking had been forged,
5) Failed to comply with the said undertaking given by his practice to Irish Nationwide Building Society, dated 29 March 2007, in respect of a loan to him in the amount of in or about €4,545,000, and in particular breached the terms of the undertaking by failing to ensure that he had good marketable title to the properties listed in the said undertaking as security for the loan, and further failed to execute, stamp and register charges against the properties in favour of Irish Nationwide Building Society,
6) Forged the signature of a solicitor in his practice on an undertaking furnished to EBS Building Society in respect of a loan to him of, in or about, €1 million secured/secured in part on 103 Clonard Road, Crumlin, Dublin 12,
7) Dishonestly caused or permitted undertakings to be given to two financial institutions, namely EBS Building Society and IIB Bank, secured in part on the same property, 103 Clonard Road, Crumlin, Dublin12,
8) Dishonestly repeatedly caused or permitted undertakings to be furnished by his practice to multiple financial institutions in respect of borrowings advanced by financial institutions to him/to him and a third party, secured on the same property/properties,
9) Abandoned his practice on or about 19 October 2007 in breach of his duty to his clients and without notification to his clients and/or the Law Society,
10) Dishonestly abandoned his practice on or about 19 October 2007 in circumstances where undertakings given by his practice to financial institutions in respect of loans advanced personally to him, and in respect of which loan monies had been drawn down, had not been complied with,
11) Prior to abandoning his practice, dishonestly removed files from the practice and, in particular, removed file BYT2010001 (described as relating to lands at Clonee, Co Meath),
12) Dishonestly obtained personal loans totalling in or around €21 million by causing or permitting undertakings to be furnished by his practice on his behalf to four financial institutions, namely Irish Nationwide Building Society, Anglo Irish Bank, IIB Bank and EBS Building Society, in respect of personal borrowings secured/secured in part on the same six properties, namely: 165 Cherrywood Drive, Clondalkin; 112 Grangeview Road, Clondalkin; 12 Grangeview Grove, Clondalkin; 15 Grangeview Lawn, Clondalkin; 32 Westbourne Avenue, Clondalkin; and 27 Westbourne Park, Clondalkin (‘the six properties’),
13) Fraudulently failed to disclose to some/all of the aforesaid four financial institutions that undertakings had already been furnished to other financial institution(s) secured on the six properties,
14) Failed to comply in full with some/all of the said undertakings furnished to INBS, Anglo Irish Bank, IIB Bank and EBS Building Society in respect of the six properties,
15) Failed to comply with an undertaking given by his practice to INBS on or about 12 October 2006 in respect of monies advanced to him personally and secured in part on the six properties,
16) Failed to return title documentation in respect of the said six properties furnished to him by Anglo Irish Bank on trust on 5 September 2007, despite demand pursuant to the terms of accountable trust receipts given by/on behalf of his practice to the said bank,
17) Failed to comply with undertakings given by his practice to IIB, dated 6 September 2007, in respect of monies advanced to him in the amount of €9,000,000 and secured in part on the six properties, and in particular failed to submit title documentation to IIB in accordance with the terms of the said undertakings,
18) Failed to comply with an undertaking given by/on behalf of his practice, dated 25 June 2007, to EBS Building Society in respect of monies advanced to him in the amount of €3,000,000 and secured in part on the six properties,
19) Failed to comply with an undertaking given by/on behalf of his practice, dated 8 August 2007, to EBS Building Society in respect of monies advanced to him in the amount of €1,000,000 and secured in part on the six properties,
20) Failed to maintain adequate client and accounting records in respect of transactions involving 102 Boot Road, Clondalkin, Dublin 22 (102 Boot Road),
21) Dishonestly caused or permitted multiple undertakings to be given by his practice to numerous financial institutions secured/secured in part on 102 Boot Road,
22) Failed to comply with multiple undertakings given by his practice to financial institutions in respect of the borrowings of the respondent solicitor and/or third parties secured/secured in part on 102 Boot Road and failed in particular to register charges in favour of financial institutions against the said property,
23) Dishonestly gave an undertaking to ACC Bank on or about 22 April 2004 in respect of a loan to a client in the amount of in or around €1,000,000, secured in part on 102 Boot Road, in circumstances where the said client was not the owner of the said property and further failed to comply with the said undertaking by, in particular, failing to ensure the bank obtained a valid first legal mortgage on the property,
24) Dishonestly caused or permitted an undertaking to be given by his practice to EBS Building Society on or about 31 May 2004 in respect of a loan advanced to him in the amount of €945,000, secured in part on 102 Boot Road, in circumstances where he was not the owner of the said property and further in circumstances where he had given a prior and conflicting undertaking dated 22 April 2004 to ACC Bank in respect of a loan to a client and, further, failed to comply with the said undertaking to EBS Building Society and in particular failed to register a first legal mortgage against the property in favour of EBS Building Society,
25) Dishonestly caused or permitted an undertaking to be given on behalf of his practice to Irish Nationwide Building Society on 29 March 2007 in respect of a loan to him in the amount of in or about €4,545,000 and secured in part on 102 Boot Road in circumstances where prior undertakings given by his practice in respect of the property remained outstanding and further failed to comply with the terms of the said undertaking by failing to execute and register a first legal mortgage against the said property in favour of Irish Nationwide Building Society,
26) Dishonestly sought to mislead Irish Nationwide Building Society by writing to Irish Nationwide Building Society by letter dated 18 October 2007 undertaking to complete the certificate of title and to comply with the undertaking given to Irish Nationwide Building Society dated 29 March 2007, which referred to Irish Nationwide Building Society obtaining a first legal mortgage in respect of 102 Boot Road, knowing that similar undertakings had been given by his practice to ACC Bank and EBS Building Society and further in circumstances where he had personally secured a loan of €9 million secured in part on 102 Boot Road from IIB Bank on 7 September 2007 on foot of a further undertaking furnished by his practice,
27) Dishonestly offered 102 Boot Road as security for his personal borrowings, knowing that the property was the subject of multiple prior undertakings to other financial institutions, which remained outstanding,
28) Dishonestly obtained a loan from IIB Bank in the amount of €9,000,000 on or about 7 September 2007, secured in part on 102 Boot Road, on foot of an undertaking given by his practice to the said bank dated 6 September 2007 in circumstances where the property had previously been offered as security for loans from other financial institutions and in respect of which undertakings given by his practice to register charges against the property in favour of those financial institutions remained outstanding,
29) Dishonestly obtained a loan from Irish Nationwide Building Society in the amount of €4,545,000 on or about 30 March 2007, secured in part on 102 Boot Road, on foot of an undertaking given by his practice to the said bank dated 29 March 2007 in circumstances where the property had previously been offered as security for loans from other financial institutions and in respect of which undertakings given by his practice to register charges against the property in favour of those financial institutions remained outstanding,
30) Dishonestly obtained loans from Bank of Scotland in the amounts of €3,550,000 and €450,000, secured in part on 102 Boot Road, on or about 1 December 2004 on foot of an undertaking given by his practice to the said bank on 29 November 2004 in circumstances where the property had previously been offered as security for loans from other financial institutions and in respect of which undertakings given by his practice to register charges against the property in favour of those financial institutions remained outstanding,
31) Dishonestly obtained a loan from EBS Building Society in the amount of €945,000, secured in part on 102 Boot Road, on foot of an undertaking given by his practice dated 3 June 2004 in circumstances where the property had previously been offered as security for a loan to a third party from another financial institution and in respect of which an undertaking to register a charge given by his practice against the property in favour of that financial institution remained outstanding,
32) Failed to ensure the payment of stamp duty in respect of the sale of 102 Boot Road on or about 10 October 2002,
33) Failed to ensure the payment of stamp duty on time and within 30 days of the completion of the purchase of 102 Boot Road by a client on or about 4 August 2000,
34) Failed to maintain any or any proper records in relation to the payment of stamp duty on transactions involving 102 Boot Road,
35) Failed to maintain adequate client and accounting records in respect of transactions involving the property known as Otterbrook, Kilquade, Co Wicklow (Otterbrook),
36) Failed to ensure the payment of stamp duty on time and within 30 days of the completion of the purchase of Otterbrook by a client in or about November 2002,
37) Failed to maintain any or any adequate vouching documentation in respect of the payment of stamp duty in respect of the said purchase of Otterbrook by the same client,
38) Dishonestly caused or permitted multiple undertakings to be given by his practice to multiple financial institutions in respect of borrowings of the same client secured/secured in part on Otterbrook, in circumstances where prior and conflicting undertakings were outstanding and charges in favour of financial institutions were not registered against the said property,
39) Failed to comply with undertakings given by him in respect of loans advanced to the same client by ACC Bank (dated 12 August 2003 and 20 June 2007 – loans of €746,218.37 and €1 million), EBS Building Society (dated 28 May 2003 and 31 January 2005 – loans of €1 million and €3 million) and Irish Nationwide Building Society (dated 20 December 2006 – loan of €1,500,000) by failing to register first legal mortgages/charges in favour of the said financial institutions against Otterbrook in accordance with the terms of the said undertakings,
40) Dishonestly gave an undertaking to EBS Building Society, dated 26 June 2007, in respect of a loan to the same client in the amount of €1,500,000, secured in part on Otterbrook, in which he undertook to hold all documents of title on accountable trust receipt from EBS Building Society and to return all title documents to EBS Building Society as soon as possible or on demand, in circumstances where the said undertaking was in direct conflict with an undertaking he had given to ACC Bank six days earlier, dated 20 June 2007, by which he undertook to secure a first legal mortgage for ACC Bank against Otterbrook and hold all title documents in trust for ACC Bank,
41) Dishonestly gave undertakings to Ulster Bank Ireland Limited, dated 10 March 2004 and 1 April 2004, in respect of a loan advanced to the same client in the amount of in or about €1,400,000, secured in part on Otterbrook, by which his practice confirmed to the bank that the title to the said property was unencumbered and undertook if required to attend to the registration of a first legal charge of Ulster Bank Ireland Limited on the property, in circumstances where he/his practice had given prior undertakings to other financial institutions to register first legal mortgages against the said property, which remained outstanding,
42) Failed to maintain adequate client and accounting records in respect of transactions involving The Lodge (St Mary’s), Blackberry Lane, Delgany, Co Wicklow (The Lodge),
43) Dishonestly caused or permitted multiple undertakings to be given by his practice to multiple financial institutions in respect of borrowings of a client secured/secured in part on The Lodge, in circumstances where prior undertakings remained outstanding and charges in favour of financial institutions were not registered against the said property,
44) Failed to comply with an undertaking given to EBS Building Society dated 31 January 2005 in respect of a loan advanced to the same client, secured in part on The Lodge, in the amount of €3 million and in particular failed to register a first legal mortgage/charge in favour of EBS Building Society against the said property in accordance with the terms of the said undertaking,
45) Dishonestly gave an undertaking to Ulster Bank Ireland Limited, dated 27 July 2007, in respect of loans advanced to the same client in the amounts of €1,400,000 and €1,300,000 and secured in part on The Lodge, in which he undertook to hold all documents of title for The Lodge to the order of Ulster Bank Ireland Limited pending completion of the sale of the property, in circumstances where the said undertaking was in direct conflict with an undertaking given by him to EBS Building Society, dated 26 June 2007, in respect of a loan advanced to the same client in the amount of €1,500,000, secured in part on The Lodge, by which his practice undertook to hold the documents of title for The Lodge on accountable trust receipt to EBS Building Society,
46) Failed to maintain adequate client and accounting records in respect of transactions involving 14 Liberty View, Pim Street, Dublin 8 (14 Liberty View),
47) Dishonestly caused or permitted multiple undertakings to be given by his practice to multiple financial institutions in respect of borrowings of a client secured/secured in part on 14 Liberty View, in circumstances where prior undertakings remained outstanding and charges in favour of financial institutions were not registered against the said property,
48) Failed to comply with an undertaking given by him, dated 22 September 2005, to National Irish Bank in respect of a loan advanced to the same client in the amount of €2 million and an overdraft facility in the amount of €2 million secured in part on 14 Liberty View, and in particular failed to register a first legal mortgage/charge against the said property in favour of National Irish Bank in accordance with the terms of the said undertaking,
49) Failed to comply with an undertaking given by him, dated 22 November 2005, to EBS Building Society in respect of a loan advanced to him personally in the amount of €1,607,000, secured in part on 14 Liberty View, and in particular failed to register a first legal mortgage/charge against the said property in favour of EBS Building Society in accordance with the terms of the said undertaking,
50) Dishonestly caused or permitted the undertaking dated 22 November 2005 to be given to EBS Building Society, which said undertaking required him to secure a first legal mortgage/charge on 14 Liberty View for EBS Building Society in circumstances where, eight days previously, his practice had given an undertaking to Bank of Scotland, dated 14 November 2005, in relation to a loan also secured in part on 14 Liberty View, by which his practice undertook not to do any act that would enable the property to be mortgaged or assigned without the consent of Bank of Scotland,
51) Dishonestly obtained a loan from EBS Building Society on or about 25 November 2005 in the amount of €1,607,000, secured in part on 14 Liberty View, in circumstances where he was not at that time the owner of the said property or, in the alternative, failed to maintain any client or accounting records in relation to the transfer of the property to him,
52) Dishonestly caused or permitted multiple undertakings (dated 22 November 2005, 31 January 2007, 25 June 2007 and 8 August 2007) to be given by his practice to EBS Building Society in relation to loans advanced to him personally and secured in part on 14 Liberty View, by which he undertook that a first legal mortgage would be registered in favour of EBS Building Society against the said property and further undertook that his practice would hold the documents of title on accountable trust receipt from EBS Building Society in circumstances where he knew/ought to have known that prior undertakings had been given by his practice in relation to the borrowings of a client also secured in part on 14 Liberty View,
53) Allowed continuing deficits on the client account of in or around €5,793,948 at 30 April 2006, in or around €6,867,015 at 31 July 2006 and in or around €7,085,276 at 31 August 2006,
54) Caused or permitted deficits to arise on the client account at 30 April 2006 through the use of client monies in a manner not permitted by the Solicitors’ Accounts Regulations (the regulations),
55) Allowed a deficit on the client account of in or around €185,000 as of 31 May 2007,
56) Dishonestly sought to conceal/permit the concealment of the fact that a deficit had arisen on the client account as of 31 May 2007 and did so by causing or permitting the transfer of funds into the client account on or about 31 May 2007, which represented a date in respect of which an accounting report was required to be drawn up and filed with the Law Society,
57) Failed to ensure payment of stamp duty on transactions in respect of which his practice acted and/or failed to maintain proper client and accounting records of payment of stamp duty,
58) Caused or permitted flagrant and widespread breaches of the regulations in the keeping of the accounts of his practice,
59) Allowed debit balances to arise on the client account in the amount of approximately €185,000 at 31 May 2007, in breach of regulation 7(2)(a) of the regulations,
60) Used client monies in a manner not permitted by regulation 7 of the regulations,
61) Used client monies for his own personal use in breach of regulation 7(2)(b) of the regulations and/or used client monies for other clients and failed to properly account for such use, in breach of regulation 7(1)(a)(i) and 7(1)(a)(ii) of the regulations,
62) Failed to maintain adequate client and accounting records, in breach of regulation 12, and in particular in breach of regulation 12(1), 12(2), 12(3)(a) and 12(3)(b) of the regulations,
63) Used suspense accounts in breach of regulation 12(1) and 12(2) of the regulations,
64) Failed to maintain accounting records of each client matter and all documents generated in the course of each client matter, in breach of regulation 20(1)(h) of the regulations.

The tribunal ordered the Law Society to bring the report of the tribunal in respect of the respondent solicitor before the High Court, with recommendations that the respondent solicitor be struck off the Roll of Solicitors, pay a monetary penalty of €1,000,000, and pay the whole of the costs of the Law Society to be taxed in default of agreement.

On 16 June 2008, the President of the High Court ordered:
i) That the name of the respondent solicitor be struck off the Roll of Solicitors,
ii) That the respondent solicitor pay a monetary penalty of €1,000,000 to the Law Society, and
iii) That the Law Society recover from the respondent solicitor the costs of the proceedings before the Solicitors Disciplinary Tribunal and the costs of the application to the High Court when taxed in default of agreement.