Liverpool high-rise developments halted amid fraud probe

Image caption, The Infinity scheme on Leeds Street is due to be completed in December 2021

Work on two high-rise apartment blocks in Liverpool city centre has stopped amid a fraud investigation.

Merseyside Police have seized 拢200,000 in cash from the Elliott Group, which is behind 20 developments in north-west England.

Boss Elliott Lawless, 32, who has been questioned by officers, says the money was properly accounted for.

Nick Kavanagh, head of regeneration at Liverpool City Council, has also been questioned, it has emerged.

Contractors Vermont confirmed work on two developments was suspended on Monday.

Aura, a student scheme in the city's Knowledge Quarter, was due to be completed in September, and phase one of the Infinity scheme on Leeds Street - a 38-storey, residential tower with 416 apartments, was scheduled to be finished in December 2021.

'Completely baseless'

Work is continuing on all other Elliot Group and Vermont Group projects.

Neither Mr Lawless or Mr Kavanagh has been charged with any offence and both have been released on bail.

They were arrested before Christmas as part of what police have described as an ongoing investigation.

Mr Lawless was held on suspicion of conspiracy to defraud, bribery and corruption while Mr Kavanagh was held on suspicion of conspiracy to defraud and misconduct in public office.

In a statement, Mr Lawless said: "It is important that I clear my good name quickly and that we move on from this.

"The allegations are completely baseless.''

Mr Kavanagh is still listed on Liverpool City Council's website as working for the management team, and a council spokesman would not confirm or deny his employment status, stating the council "does not comment on individual employees".

An Elliot Group spokesman said: "We want to resume all works as quickly as possible and to ensure completion of the project for the purchasers and investors."