ESG Enforcement Tracker

Key facts:

The SFO has opened an investigation into the Rockfire Group in relation to alleged fraud committed against Thurrock Council (the Council). According to its statement of 3 June 2025, the SFO has issued a series of notices under section 2 of the Criminal Justice Act 1987 requiring financial institutions to provide information relevant to the investigation.

Prior to the SFO announcement, the Council had already issued High Court proceedings against Rockfire Capital Limited (now in liquidation) and its owner, Liam Kavanagh. The Council claims that between 2017 and 2020, the Council invested £400 million in bonds issued by Rockfire, which were to be secured against a portfolio of solar farms. The Council alleges that the investments were made in reliance on valuations procured by Mr Kavanagh and / or the company, and based on assumptions provided by him.

According to the Council, a substantial portion of the funds it invested were not applied for the purposes permitted by the bonds. Instead, the investments are alleged to have been diverted by Mr Kavanagh largely for his personal benefit. Mr Kavanagh is said to have used the funds to purchase, amongst other things, a Bombardier private jet worth £9.1 million, a yacht worth £13.7 million, and a country estate worth £20.75 million.

The Council argues that these purchases were in breach of contract and in breach of trust, and that about £150 million was misapplied in this manner. Further, the Council says, investments totalling £130 million between 2018 and 2020 were induced by fraudulent misrepresentations about the basis on which the valuations were prepared. The Council advances claims against Rockfire and Mr Kavanagh in deceit; inducing breach of contract; knowing receipt; dishonest assistance; equitable proprietary claims; and unlawful means conspiracy.

The Council states that it has made some recovery from the sale of the solar farm assets in February 2024. However, it also claims that payments under the bonds ceased in February 2022, which was followed by the Council being declared effectively bankrupt in December 2022.

The High Court proceedings are currently stayed pending potential alternative resolution. By contrast, the SFO’s investigation appears to be at a preliminary stage.