Liverpool property developer and high ranking council official arrested in fraud investigation

A Liverpool property developer and a senior council official have been arrested on suspicion of fraud.

Liverpool property developer Elliot Lawless and Liverpool City Council’s Director of Regeneration Nick Kavanagh were arrested by police yesterday.

Nick Kavanagh

The arrests took place yesterday afternoon and both were released after questioning on conditional bail.

Police arrested Mr Lawless, aged 32, at his city centre flat.

Mr Kavanagh, aged 50, was arrested in his office. He was arrested on suspicion of conspiracy to defraud and misconduct in a public office.

Mr Lawless was arrested on suspicion of conspiracy to defraud, bribery and corruption.

Mr Kavanagh was appointed director for regeneration at the city council in 2011 and is in charge of the city’s major regeneration schemes.

A Merseyside Police statement said: “A 32-year-old man from Liverpool city centre has been arrested on suspicion of conspiracy to defraud, bribery and corruption.

“Whilst a 50-year-old man, employed by Liverpool City Council, has been arrested on suspicion of conspiracy to defraud and misconduct in public office.”

Mr Lawless said: “This is a frustrating turn of events as we are extremely busy delivering major schemes across the north.

“I’m helping the police fully with their enquiries and am more than happy to do so. It is important that I clear my good name quickly and that we move on from this.

“The allegations are completely baseless but due process needs to be followed and whilst the police do their work I’ll not comment further on the issue.

“In the meantime, it’s business as usual. I have seven live schemes in Liverpool to deliver and am back at my desk doing just that.”

Mr Lawless, a former plumber, is the founder of the Elliot Group which is working on major schemes in Liverpool and Salford.

Schemes include the £170m redevelopment of Heap’s Rice Mill, the £100m redevelopment of Wolstenholme Square, the £100m Aura student scheme and a scheme including 1,000 apartments on Leeds Street in Liverpool.

Liverpool Mayor Joe Anderson said: “We will co-operate with the police unequivocally and will assist them in any way that we can.

“If there is anything the police needs access to or help with then we will of course do that.”