A firm of solicitors is under investigation in connection with an alleged 7million fraud and money laundering operation, the High Court heard on Friday.
It was also revealed that detectives have established 116 "high risk lending transactions" linked to a former bank manager accused of being at the centre of the scam.
Details emerged as bail was granted to a financial adviser facing a string of charges in connection with a racket where false identities were allegedly set up to make applications for loans and mortgages.
Damien Mallon, 52, who ran Halifax franchises in Dungannon, Co Tyrone and Keady, Co Armagh was said to have made admissions about his role which have had a "devastating" effect professionally and personally.
Mallon, of Drumconwell Road, Armagh, is accused of two counts of fraud by abuse of position, six charges of converting criminal property, two counts of entering into an arrangement to acquire criminal property, and conspiracy to defraud on dates between 2002 and 2009.
He was arrested along with Peter Creegan, a former branch manager of the First Trust in Newry, after police received complaints from the bank and a third party.
Creegan, 43, from Tullydonnell Road, Silverbridge, Co Armagh, remains in custody charged with multiple fraud and money laundering offences.
False names
During Mallon's application for bail, Crown lawyer Tessa Kitson claimed the operation involved authorising financial loans to people and businesses, sometimes with false names.
She said: "At this stage police inquiries reveal there are some 116 high risk lending transactions authorised or associated with Mr Creegan. Of these six of them expose the bank to an estimated amount of 3.4m sterling and 3.9m euros."
The court heard that Mallon, who has been suspended by the Financial Services Authority, admitted participation by making false applications, with one sum of 300,000 involved.
"He also admitted to laundering money for other persons associated with Mr Creegan and also for his own benefit," Mrs Kitson said.
Although much of the multi-million pound fraud has been traced back to property bought up, a considerable amount remains unaccounted for, it was claimed.
Defence counsel Ronan Daly said Mallon made confessions during 18 police interviews over the last week, but stressed his involvement with Creegan was limited.
'Small fish'
The barrister's submissions that Mallon was only a "small fish" in the alleged scam were accepted by the prosecution.
Mr Daly also disclosed: "A prominent firm of solicitors in the Newry area appears to be the subject of a number of lines of questioning in this matter and appears to be on the police radar in relation to this matter."
No names were given, but he added: "Mr Mallon would instruct he has never had any involvement with this firm of solicitors. Police investigations are focusing very much on transactions that were passed through this firm of solicitors."
Mr Mallon's wife Jennifer and some of their five children were in court as Mr Daly spoke of the huge consequences of his arrest on them and his business.
"He has been suspended by the FSA, he has been suspended by the Halifax and he can have no dealing with customers," the barrister said.
"The five members of staff he employs in two offices, their jobs are very much at risk."
Granting bail, judge Mr Justice Weatherup said Mallon appeared to be on the periphery of the main players.
"This is a sorry outcome for a man who has been building up his business for 25 years," he added.
Mallon was ordered to put up 5,000, lodge a 15,000 cash surety and surrender his passport before he can be released.
He was also curfewed, directed to have no contact with Creegan and banned from operating any bank accounts other than that in the family name.
© UTV News