Man who bought private jet with bankrupt Thurrock Council money is sued for fraud

Man accused of cheating the bankrupt Thurrock Council out of millions of pounds in order to buy luxury goods, is now being sued.

According to leaked documents, it was revealed last July that Liam Kavanagh (47) used Thurrock Council’s money to buy luxury goods.

Conservative-led Thurrock Council started investing cash with Kavanagh’s solar farm business, Rockfire Capital in 2016. An investigation by BBC Panorama and The Bureau of Investigative Journalism revealed that Essex council invested £655m into Rockfire Capital. 

It was reported that Kavanagh had taken as much as £130m and spent it on a private jet, yacht, Bugatti supercar and a diamond-encrusted Hublot watch.

According to Companies House, Kavanagh is still a director for Rockfire Capital, the only company with a current appointment out of the 92 that were once listed under his name. The accounts are showing to be overdue for Rockfire. 

The news came after Thurrock Council issued a bankruptcy notice back in December 2022 after financial issues and failed investments lumped the Essex council with debts of about £1.3bn – some of the largest ever recorded by a local authority.

In order to pay off its debts, the UK government has allowed the local authority to increase council bills by 10 per cent. 

Thurrock Council has been under Conservative control since the 2021 election.

On Wednesday, the High Court records show that Thurrock Borough Council has hired law firm Birketts to issue legal proceedings against Kavanagh and his business, Rockfire Capital.

The court records state that action is a part 7 claim for commercial fraud.

At the start of the year, the Financial Reporting Council (FRC) revealed that it had launched an investigation into the conduct of “a member” in relation to the bankrupted Thurrock Council’s accounts.

The accountancy regulator said a decision was made at a meeting of its conduct committee on 21 November 2023, with the investigation being conducted by the FRC’s executive counsel under the Accountancy Scheme.

When contacted for comment, Thurrock Council confirmed the lawsuit, but declined to comment “at this stage”.