Thurrock Council has launched a High Court lawsuit against businessman Liam Kavanagh and investment company Rockfire Capital Ltd to recover misappropriated investment funds.
Court papers, published this week, confirm that Thurrock Council 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.
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.
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."
Court papers were published this week after Kavanagh’s lawyers acknowledged their receipt.