A TYCOON allegedly splashed out on a private jet and Bugatti supercar after a cash-strapped council invested £150million in the doomed deal.
Thurrock Council has launched a High Court lawsuit against Liam Kavanagh and his investment company Rockfire Capital.
BBCLiam Kavanagh allegedly misused investment funds to pay for his lavish lifestyle[/caption]
The businessman owns a fleet of supercars
JetPhotosMr Kavanagh allegedly bought a private jet worth £9.1million[/caption]
The local authority was effectively declared bankrupt in 2022 after several disastrous investments in solar farms left it with debts of more than £1billion.
The council in south-east England claims Mr Kavanagh and his firm misused around £150million of investment funds to pay for his lavish lifestyle.
In the court papers, first seen by the Financial Times, Thurrock alleges Mr Kavanagh took tens of millions of pounds that were meant for investment in renewable energy plants.
He instead supposedly used the money to buy luxury items including spending £13.7million on a yacht and £9.1million on a Bombardier private jet.
The businessman also reportedly splashed £3million for a property in Mallorca, £2million on a Bugatti Chiron supercar and £20.75million on a 232-acre country estate in Hampshire.
Mr Kavanagh denies all of the allegations.
His lawyers said: “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.”
Thurrock Council initially invested £268million in bonds backed by solar farms in a series of deals with Mr Kavanagh.
The council claims it bought more funds on the basis of “fraudulent misrepresentations” by Mr Kavanagh and Rockfire.
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.”
AlamyThurrock Council has launched a High Court lawsuit against the tycoon[/caption]
BBCMr Kavanagh owned multiple solar farms such as this one in Wiltshire[/caption]