The UK’s Serious Fraud Office (SFO) has opened a formal investigation into Rockfire Investment Finance, a company at the center of the financial collapse of Thurrock Council. Between 2016 and 2020, Thurrock Council invested over £100 million in a bond scheme promoted by Rockfire and its associated companies, which promised returns between 3% and 6%. Unfortunately, Rockfire later went into liquidation, and the council suffered significant financial losses. These losses contributed heavily to Thurrock Council’s bankruptcy in 2022, with debts exceeding £1 billion.
Thurrock Council alleges that Liam Kavanagh, the Dubai-based businessman and head of Rockfire Capital, misappropriated £150 millions of public funds for personal gain. The council claims Kavanagh used the money to buy luxury assets, including a £13.7 million yacht, a £9.1 million private jet, and a property in Mallorca. Kavanagh denies the accusations and is contesting the jurisdiction of UK courts over the matter. However, Thurrock Council welcomes the SFO’s investigation and is pursuing civil claims to recover public money. So far, the council has reclaimed over £650 million from its previous investments.
The SFO’s probe highlights its determination to tackle complex financial crimes and hold individuals accountable for fraud that undermines public trust and the integrity of financial systems.
In recent years, the SFO has been active in investigating other bond schemes. One notable case involved London Capital & Finance (LCF), which collapsed after raising £237 million from over 11,600 investors. A UK High Court judge ruled that LCF was a Ponzi scheme, with key figures knowingly participating in fraudulent activity. The collapse led to regulatory changes and a taxpayer bailout for affected investors.
Additionally, the SFO is investigating Signature Group, a Liverpool-based property company that collapsed in 2020, leaving investors owed up to £140 million. In early 2024, the SFO arrested four individuals linked to this case after raids in Merseyside and Greater Manchester. These efforts demonstrate the SFO’s commitment to protecting investors and fighting financial crime.
The SFO encourages anyone with information about Rockfire or similar schemes to come forward and assist the investigations. Public cooperation is crucial for maintaining transparency and ensuring justice.
This investigation marks a significant step in addressing financial fraud that affects public institutions and investors. The SFO’s actions send a clear message that unethical behavior in financial markets will not be tolerated.
