They were the epitome of the Celtic Tiger economic boom, enjoying to the full their good fortune and wealth with money lavished on expensive cars, exclusive homes and fine dining. Now one is on the run and the other has had his assets frozen as the banks and courts go after two high-profile solicitors with debts of more than £50 million.

Ireland has never seen a legal scandal like it, with one newspaper describing the fate of Michael Lynn and Thomas Byrne as “a cautionary tale about the inevitable consequences of the greed, arrogance and recklessness that fuelled the Celtic Tiger”.

Fears are growing that their dealings are merely the tip of the iceberg, with more solicitors about to be exposed. Radio chat shows were inundated with callers wanting to know if they actually owned their homes after one man said that upon checking his deeds he discovered that his house was registered in the name of a solicitor with several mortgages attached to it.

Mr Lynn appeared in the High Court in Dublin on Monday, where it was revealed that he had spent more than €26 million (£18 million) since January on a portfolio of more than 100 properties, including houses in Slovakia, Bulgaria, China, Spain, Britain and Dubai.

He is alleged to have taken out multiple mortgages on several properties with numerous Irish financial institutions, as well as using clients’ funds to finance his personal transactions. No fewer than 50 lawyers were in court on Thursday to see if they could recover funds he borrowed. Hundreds of small investors are also seeking to ensure that their mortgages and titles to their homes are safe.

Mr Byrne, 41, failed to appear in court this week on similar charges and is presumed to have absconded. In 2004 he hosted a talk by Michael Portillo, the former Conservative Cabinet minister, which was attended by more than 100 Irish businessmen and women.

Ten banks and other financial institutions are now pooling information to try to establish the true extent of the solicitors’ liabilities, which were said yesterday to be €80 million and rising.

Mr Byrne’s outstanding debts currently exceed €30 million, with the Irish Nationwide Building Society having already issued proceedings to recover €10.5 million. Mr Lynn’s liabilities are put at about €50 million.

“Corners were cut by the Government, banks and lawyers in the name of entrepreneurial flair and consumer championship, but we are now paying the price for quick fixes and turning a blind eye to suspect practices. For the past ten years, credit has been cast around like candy to those who could and could not afford it,” wrote one commentator this week.

The key to their alleged malpractice was a change in the law, made 20 years ago, that enabled solicitors and banks to bypass the independent checks and balances required to secure a title when mortgaging residential property.

This allowed a buyer’s solicitor to check and register the legal title of a property for both the lender and borrower.

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