The Serious Fraud Office has launched an investigation into a solar farm investment firm over alleged fraud committed against Thurrock Council.

The Essex council was declared bankrupt in December 2022 after it lost millions investing in solar farms through the firm.

The SFO said between 2016 and 2020, Thurrock Council invested hundreds of 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 offered multiple investment opportunities in renewable energy bonds, offering a return on investment between 3% and 6% as well as the return of the initial bond purchase cost. The group has since entered liquidation, the SFO said.

The fraud watchdog today issued a series of Section 2 notices compelling financial institutions to provide information on its investigation into the alleged fraud committed against Thurrock Council. 

Nick Ephgrave, director of the SFO, 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.”

Victoria Holloway of Thurrock Council, said: “Since these catastrophic investments first came to light, this administration has consistently called for a full investigation. It represents a vital step toward securing justice and ensuring accountability on behalf of our communities.

“The council is vigorously pursuing civil claims against Rockfire and its owner to recover public funds lost through these failed investments.”

The Council said it has already recouped more than £650million of public money from its various historic investments.

Details of Thurrock Council's financial problems were outlined in a government-commissioned report published in June 2023.

The report said: "Between 2016 and 2022 Thurrock Council pursued a strategy of borrowing large amounts of money, predominantly from other local authorities, and using this to undertake a range of investments for the purposes of securing a return. The income from this strategy enabled local political leaders to forestall or avoid difficult decisions on savings, raising council tax, and the transformation of local services for several years.

"But the Council failed to understand and control the risks of this investment strategy. The ultimate failure of the strategy, and the scale of the financial loss that has resulted has undermined the financial viability of the authority and will require significant external support to be provided."