Latest news with #RockfireGroup
The Independent
03-06-2025
- Business
- The Independent
Investigation launched into suspected fraud against debt-ridden local council
The Serious Fraud Office has launched an investigation into failed investments in solar farms that left a local council £1.5 billion in debt. Investigators have issued so-called section 2 notices against banks and other financial institutions to demand documentation relevant to the case. Investments were made by Thurrock Council in Essex through Rockfire Investment Finance Plc and other companies operating within the Rockfire Group between 2016 and 2020. The local authority was offered returns of 3% to 6% on its multi-million pound investment. Rockfire went into liquidation, and Thurrock Council was effectively declared bankrupt in December 2022, with debts of £1.5 billion. It has since recouped £650 million of public money. Director of the Serious Fraud Office, Nick Ephgrave said: 'Today's action is a significant step in our investigation concerning this suspected criminality. 'We are grateful for the assistance of Essex Police, Thurrock Council and others in the early stages of this inquiry.' Victoria Holloway, Thurrock Council cabinet member for Place and the Environment, said: 'Since these catastrophic investments first came to light, this administration—standing firmly alongside our residents—has consistently and rightly called for a full investigation. 'We therefore strongly welcome today's announcement from the Serious Fraud Office (SFO). 'It represents a vital step toward securing justice and ensuring accountability on behalf of our communities. 'Thurrock Council will continue to fully support this investigation and will make sure the SFO has access to all the information it requires, as we have continued to do since these losses were uncovered. 'Alongside this, the council is vigorously pursuing civil claims against Rockfire and its owner, Liam Kavanagh, to recover public funds lost through these failed investments. 'Today's announcement strengthens our resolve to see this through.'
The Guardian
03-06-2025
- Business
- The Guardian
SFO investigates alleged multimillion-pound fraud at collapsed council
The Serious Fraud Office (SFO) has launched an investigation into Rockfire Investment Finance, which became embroiled in a financial scandal over how a UK council invested more than £100m into solar farms. The UK's anti-corruption agency said it had 'issued a series of section 2 notices compelling financial institutions to provide information on its newly opened investigation into alleged fraud committed against Thurrock council'. It added: 'Between 2016 and 2020, Thurrock council invested millions into solar farms, via a bond scheme sold by the UK-based Rockfire Investment Finance plc and other companies operating within the Rockfire Group.' Rockfire's renewable energy bonds were said to have offered a return of between 3% and 6%, on top of the original funds invested. The company has since entered liquidation. The subsequent losses contributed to Thurrock, which lies on the north bank of the River Thames immediately east of London and includes the Port of Tilbury, formally declaring effective bankruptcy in 2022 having run up debts of more than £1bn after a series of disastrous investments. The council sued the Dubai-based businessman Liam Kavanagh and his firm Rockfire Capital in London's high court last year, in a case in which the council alleged that the tycoon misused £150m of its funds for personal gain, including buying a luxury yacht and private jet. Kavanagh appeared to have spent some of the funds to make purchases largely 'for his personal benefit', including £13.7m on a yacht and £9.1m on a Bombardier private jet, as well as using £3m for a property in Mallorca, the court filings alleged. At the time, Kavanagh's lawyers said in a statement: '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 Guardian made efforts to contact Kavanagh and Rockfire via their lawyers after the SFO's announcement. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Thurrock council welcomed news of the SFO's investigation. Victoria Holloway, a cabinet member, said: 'Alongside this, the council is vigorously pursuing civil claims against Rockfire and its owner, Liam Kavanagh, to recover public funds lost through these failed investments. Today's announcement strengthens our resolve to see this through.' The council said it had so far recouped more than £650m of public money from its various historic investments.
BBC News
03-06-2025
- Business
- BBC News
Serious Fraud Office investigate alleged council fraud
A company into which a struggling council invested hundreds of millions of pounds is being investigated by the Serious Fraud Office (SFO). Thurrock Council in Essex was effectively declared bankrupt in 2022 - and had a debt of £ 2016 and 2020, the council invested millions into solar farms, via a bond scheme sold by the UK-based Rockfire Investment Finance Plc and other companies operating within the Rockfire Group, the SFO said. Nick Ephgrave, director of the SFO, said: "Today's action is a significant step in our investigation concerning this suspected criminality." The Rockfire Group will now be compelled by the SFO to provide evidence. 'Justice and accountability' Thurrock Council has welcomed the investigation. Labour cabinet member Victoria Holloway said the SFO investigation "represents a vital step toward securing justice and ensuring accountability on behalf of our communities".Thurrock has had to raise council tax above the rate of many local authorities in recent and impose spending cuts. Whilst £650m has been recouped from the investments the council made, millions have been Group has since entered administration. Separate High Court civil proceedings brought by Thurrock Council are under way against Rockfire Investment Finance Plc and its former a statement the SFO said: "Rockfire offered multiple investment opportunities in renewable energy bonds, offering a return on investment between 3-6% as well as the return of the initial bond purchase cost."It confirmed it had issued a series of Section 2 notices, compelling financial institutions to provide information on its newly opened investigation into alleged fraud committed against Thurrock Police and Thurrock Council are helping in the early stages of this investigation. Follow Essex news on BBC Sounds, Facebook, Instagram and X.
Daily Mail
03-06-2025
- Business
- Daily Mail
Serious Fraud Office investigates solar firm paid £400 million by council after its owner blew £150m of company cash on luxury lifestyle including £14m yacht, and £9m private jet
The Serious Fraud Office has launched an investigation into an alleged £400 million fraud against Thurrock Council in Essex by a Dubai-based solar tycoon who spent almost half of it funding his luxury lifestyle. The body, responsible for investigating complex financial crime in the UK, has issued a series of Section 2 notices compelling financial institutions to provide information after launching the probe into the Rockfire Group. Headed up by Liam Kavanagh, Rockfire convinced Thurrock Council to invest £400 million in bonds for a green energy scheme involving solar farms - before its CEO allegedly blew £150 million on properties, jets and yachts. In a High Court lawsuit last year, Thurrock Council accused Kavanagh, 47, of spending £13.7 million on a new yacht, £9.1 million on a private Bombardier jet, £20 million on a 232-acre country estate in Hampshire and £3 million on a Mallorca property. The council initally invested £268 million in bonds sold by Rockfire Investment Finance Plc, and other companies in the Rockfire group. The firm is now in administration, with just £90 to its name at the time according to a statement of affairs, which also listed the company as owing £168,997,476 to Thurrock Council. Rockfire promised a three to six percent return on any investments made in addition to the bond costs. In its High Court filing, Thurrock Council said it went on to make further investments based on 'fraudulent misrepresentations' and claimed Kavanagh deliberately ensured 'completely unrealistic' electricity prices were used to increase the farms' value. The council was effectively declared bankrupt in December 2022 after accruing debts totalling £1.4 billion. The council's involvement with Kavanagh, who is based in the UAE, began in June 2016 when, alongside Warrington and Newham councils, it financed the purchase of a solar farm in Swindon through bonds marketed by his company Rockfire Capital. Over the next two years, Thurrock helped buy 53 sites across the UK, all of which are now owned by Kavanagh. The investments were issued through a complex series of bonds, all due to mature in the next three to four years. In return, Thurrock would get interest payments worth millions of pounds. Red flags were first raised after accounts showed Kavanagh's firm pocketed £5 million in 'commission'. Days after concerns emerged about Thurrock's solar deals in 2020, a new company, Anyard Holdings, was registered in the Isle of Man. Kavanagh subsequently liquidated key companies that owed the council hundreds of millions and transferred the solar farms into the new offshore structure. In total, according to Companies House, he has had roles in at least 96 different companies since 2006. Cllr Victoria Holloway, Cabinet Member for Place and the Environment, said: 'Since these catastrophic investments first came to light, this administration - standing firmly alongside our residents - has consistently and rightly called for a full investigation. 'We therefore strongly welcome today's announcement from the Serious Fraud Office (SFO). It represents a vital step toward securing justice and ensuring accountability on behalf of our communities. 'Thurrock Council will continue to fully support this investigation and will make sure the SFO has access to all the information it requires, as we have continued to do since these losses were uncovered. 'Alongside this, the council is vigorously pursuing civil claims against Rockfire and its owner, Liam Kavanagh, to recover public funds lost through these failed investments. Today's announcement strengthens our resolve to see this through.' To date Thurrock Council has already recouped more than £650 million of public money from its various historic investments. Director of the Serious Fraud Office, Nick Ephgrave QPM, said: 'Today's action is a significant step in our investigation concerning this suspected criminality. 'We are grateful for the assistance of Essex Police, Thurrock Council and others in the early stages of this enquiry.' In a previous statement at the time of the High Court filing, Kavanagh denied all the allegations, adding: '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.'
