Lynn's legal practice, which shares offices and staff with Kendar, was shut down last Monday after an investigation by the Law Society. The investigation revealed that Lynn had drawn down 26.3m in personal loans this year from many of Ireland's biggest financial institutions. Lynn reportedly recently purchased a 5.5m home in Howth and was in recent months married in Dromoland Castle.

The High Court was told he owned 105 properties, 40 of which are overseas.

Banking sources said that, through his solicitor, Michael Lynn cancelled a meeting scheduled with bank creditors on Friday. A woman answering the phone Thursday at Kendar's Capel Street offices said the company's management has been in Portgual all week.

Investors spent the week trading rumours and worries on the airwaves, phoning into RTE's Liveline. "Michael", one of the first callers to Joe Duffy's phone-in show, told the Sunday Tribune he had received "dozens" of calls from other worried investors. Some claim to have invested as much as 700,000 in resort properties to which they had yet to receive the title deed or keys.

Messages on the company's website until Friday claimed that "all projects in overseas markets are progressing as planned", despite what it called "media events". On Friday, a new message appeared: "We are currently working closely with the Kendar overseas companies to provide assurances to all investors that their investments are secure.

Each customer will receive individual communications in relation to their own investors in the coming days."

"Michael" told the Sunday Tribune he had been contacted by a Kendar executive on Friday, but that nothing in the conversation left him reassured. He was still seeking a refund for his investment.

Kendar launched its overseas property developments to great fanfare in 2004, a symbol of Irish property mania gone mainstream and overseas.

It was promoted by a gaggle of sport celebrities, particularly former Mayo Gaelic football legend turned auctioneer Willie Joe Padden.

Padden and Rui Costa, the AC Milan and Portugal soccer star, appeared in a full-page ad in the programme for the 2004 All Ireland Football final to launch the scheme.

Other celebrity Kendar endorsers included Darragh O Se, Ray Houghton and rugby international Victor Costello.

Several Kendar investors have been attempting to contact Padden about their overseas properties. The outgoing message on Padden's phone said he was out of the country and left a non-working Spanish phone number. Messages left on Padden's Irish phone were not returned.

Lynn cultivated his own media profile in recent years, positioning himself as a trusted expert on the risks involved in overseas property investing.

In a June 2006 article in a national newspaper, Lynn called for the sales of overseas property to be regulated.

He agreed with warnings from the Irish Association of Investment managers about the hazards of overseas property investing.

"There are opportunities in all of these countries. You come home and you're punch-drunk with opportunities. You almost have to go to bed for a week."

"My advice is to take a breather before signing anything, " Lynn was quoted as saying.

"In Ireland, it is said there are three factors to ensure success in the property market . . . location, location, location. With overseas property, it's investigate, investigate and investigate, " he told the newspaper.

A marketing expert said the unfolding scandal may prompt other sports celebrities to be more cautious in their endorsements.

"There's an element of trust involved, " said Stuart Fogarty of advertising firm AFA O'Meara. "Will that scare sports personalities and make them think twice? I think so."