FINANCIAL FRAUDSTER NEWS INVESTIGATIONS EXCLUSIVE
HMRC’S CORRUPT PROBE COLLAPSES: LUCY CRAIG ADMITS FROZEN FUNDS CAME FROM HMRC ITSELF; STARLING BANK FACES MULTI-MILLION-POUND LAWSUIT FOR BLIND COMPLICITY
Norwich Magistrates’ Court, UK – A bombshell Financial Fraudster News exclusive can today reveal a seismic shift in the highly public investigation involving HMRC Investigator Lucy Craig and HMRC Solicitor John Wray.
In a stunning turn of events at Norwich Magistrates' Court, it was revealed that the bogus Account Forfeiture Notice ("AFO") was submitted to pervert the course of justice, as Ms. Craig was forced to admit that a significant portion of the disputed funds, which she had repeatedly claimed were the proceeds of crime, actually originated from HMRC itself.
This unprecedented admission, uncovered through a series of legal manoeuvres and the tenacious reporting of FFN investigators, lays bare one of the most bungled and audacious HMRC investigations of its type, exposing the despicable conduct of individuals cloaked in their seemingly untouchable employment. The resulting admission by Ms. Craig and Mr. Wray vindicates the innocent against an organisation that employs individuals who are willing to cut corners and resort to corrupt practices.
The Admission That Changes Everything
The collapse of HMRC’s case was triggered by the Respondent, Angelica Kinder, represented by Abbas Lakha KC, who relentlessly challenged the legitimacy of the AFO. In her witness statement dated 31 July 2025, Ms. Craig was compelled to make a series of admissions that directly contradict her entire investigation.
Ms. Craig admitted that:
A VAT repayment of £993,749.00 from the period 07/21 was "routinely checked," "concluded," and "issued" by HMRC itself on 28 October 2021.
Her own Production Order material shows that £190,000.00 from this HMRC-verified account was transferred into Ms. Kinder's Starling Bank account.
This is a direct and unequivocal admission from HMRC’s lead investigator that a substantial portion of the funds she pursued as criminal proceeds in fact came from the government tax authority. This stunning revelation proves the funds' lawful origin and fundamentally collapses any "reasonable grounds to suspect" money laundering when the source is a government tax repayment.
Judge Bone’s Decisive Action Amid HMRC’s Obstruction
The pivotal moment came during the hearing before District Judge Bone. Despite Ms. Craig’s damning admissions, HMRC counsel Emma King vigorously opposed a request to disclose all evidence that could "assist HMRC or would hinder the respondent Angelica Kinder".
The Attendance Note from the hearing confirms that Judge Bone pushed back against this obstruction, stating that as a public body with greater resources, HMRC has a duty to disclose all relevant material. The Judge, seeing a "charade" and a clear attempt to "pervert the course of justice," sided with the innocent. He ordered HMRC to provide an affidavit from a designated officer confirming full compliance, forcing them to disclose the source of the remaining funds.
A Corrupt Narrative and Starling Bank’s Culpability
This investigation confirms that the AFO, pursued over a protracted period by Ms. Craig and HMRC Solicitor John Wray, was based on a "speculative narrative" that was "negligent and fraudulent in whole or part". The unconscionable failure by Ms. Craig and Mr. Wray to disclose the lawful origin of the funds, and their desperate attempt to "drain the victim of resources," is a profound act of misconduct that brings the role of HMRC officers into question.
This shocking development is compounded by the damning role of Starling Bank. Its willingness to be blindly led by these discredited HMRC officials to freeze funds that were 100% legitimate could now cost its shareholders millions. The bank’s complicity in unlawfully withholding funds has exposed it to a High Court injunction application by Angelica Kinder, and the decision on a potential multi-million-pound damages claim is pending.
A Damning Indictment
The shocking developments reveal that it has taken a district judge to force the corrupt officers to disclose damning evidence that will further lay bare their inept and bias practices while executing their interpretation of their professional duties. It vindicates the innocent and brings public faith in the role of HMRC officers into question.
For further inquiries, contact:
Financial Fraudster News Investigations Team
@FraudsterNews or @therealfinancialfraudsternews or @the_real_FFN
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FINANCIAL FRAUDSTER NEWS EXCLUSIVE PART 1: HMRC's Web of Deceit Deepens – John Wray, Lucy Craig, and Azaan Syed Accused of Continued Fraud and Obstruction, Risking Millions in Taxpayer Compensation
