Council issues High Court claim alleging businessman misused £150m in investment funds to pay for “lavish lifestyle”

Thurrock Council has launched a High Court claim against businessman Liam Kavanagh and Rockfire Capital to recover investment funds that the local authority contends were spent on a private jet and a country estate.

In a statement, the council said it is suing its former investment partners for “deliberately misleading” the council to inflate the value of investments, “exaggerating the purchase cost” and value of renewable energy facilities, and “misusing around £150m of investment funds to pay for Kavanagh's lavish lifestyle rather than for the permitted purpose in breach of trust".

The council added: “It is claimed that Kavanagh took tens of millions of pounds that were meant for investment in renewable energy plants and instead used the money to buy luxury items including a private jet, a yacht and country estate in Hampshire.”

Kavanagh has strongly denied the allegations.

The council had invested millions in a solar farm business via Rockfire Capital.

Rockfire Capital went into administration in 2020 and is now under the control of liquidators at Begbies Traynor.  

The council recovered some costs when the underlying solar assets were later sold off in February 2024, but Thurrock said it had still suffered a "substantial net loss" after the sales.

Concerns about the council's investment in Rockfire Capital were first raised in early 2022 when the Bureau of Investigative Journalism (BIJ) highlighted the investments in an article.

In September 2022, the Government decided to intervene at Thurrock, citing serious financial and commercial risks and the "seriousness" of allegations made about its financial decisions.

Then, in December 2022, the council issued a section 114 notice, citing a £470 million in-year funding gap.

Cllr John Kent, Leader of Thurrock Council, said: "We have an obligation to Thurrock residents to recover as much money as possible, and we will pursue these claims as vigorously as possible.

"We have served the claim on Kavanagh in Dubai, where he now resides, and now we look forward to our day in court where he will face accusations that he deceived the council and misappropriated money to fund an extravagant lifestyle he could otherwise not afford.

"This action demonstrates how determined we are to maximise our recovery on these investments, establish how our investment money was taken, and make sure that those culpable face the consequences of their actions."

Lawyers for Liam Kavanagh said: “The claim has not been validly served on Mr Kavanagh and he is confident that his application challenging the court’s jurisdiction will succeed.

“Irrespective of the question of jurisdiction, Mr Kavanagh strenuously denies the allegations. If and when necessary to do so, and should the Court permit the claim to proceed, Mr Kavanagh will be putting forward a full defence.”

The liquidators of Rockfire Capital have been approached to comment.

Adam Carey