FINANCIAL FRAUDSTER NEWS EXCLUSIVE INVESTIGATION: HMRC’s Bungled £600k Probe Unravels As Hmrc Officer Lucy Craig Admits Frozen Funds Came From HMRC Itself
London, UK – In a bombshell development from the highly public investigation filed at Norwich Magistrates' Court, sources close to the case reveal that HMRC Investigator Lucy Craig made a stunning admission that has completely unraveled her own legal case.
Documents seen by Financial Fraudster News confirm that the bogus Account Forfeiture Notice (AFO) was submitted to pervert the course of justice, as Ms. Craig knew the disputed funds she alleged were from criminal activity actually came from HMRC itself.
This unprecedented revelation exposes one of the most bungled HMRC investigations of its type, leading to severe consequences for the targeted entrepreneur, Angelica Kinder.
The Admission That Changes Everything
For months, HMRC has pursued Miss Kinder, a business entrepreneur, under a frozen funds investigation, alleging that her assets were "recoverable property" or linked to "unlawful conduct". The core of this accusation, however, has now been obliterated by Ms. Craig’s own words in her witness statement dated 31 July 2025.
In a shocking and unequivocal admission, Ms. Craig states:
"The repayment in question was from the period 07/21 and totalled £993,749. The repayment return was routinely checked and a request was made for further information and invoices. The enquiry was concluded, and the repayment was issued."
She further admits that this payment was made on 28th October 2021 to a Barclays bank account. This is a direct and documented admission from HMRC’s lead investigator that the funds, which she repeatedly claimed were criminal proceeds of crime, in fact, originated from a legitimate VAT refund issued by the tax authority itself.
The traceability of these funds is also confirmed by Ms. Craig's own evidence. She admits that "Production Order material obtained during the frozen funds investigation shows four credits from account 50045497 totalling £190,000.00" flowing from the HMRC-verified account into Miss Kinder's Starling Bank accounts. The very accounts pursued by HMRC as vital to their investigation contained funds that Ms. Craig herself has now admitted came from the government.
A Corrupt Narrative Exposed
This admission exposes the entire AFO application as a baseless and fraudulent exercise. In her witness statement, Ms. Craig, in an attempt to justify her actions, claimed that she had "no cause to investigate the existence of a VAT refund" and had been given "no indications that the frozen funds originate from a VAT refund".
This claim of ignorance is demonstrably false and a key part of the alleged fraud. Emails produced by Ms. Craig as her own exhibits show she was sent Financial Fraudster News articles that explicitly stated the funds originated from the HMRC VAT repayment. Ms. Craig's own evidence proves that the lawful origin of the funds was brought to her attention on numerous occasions.
Miss Kinder's legal team, in a scathing rebuttal, accuses Ms. Craig and her senior solicitor John Wray of a "wilful non-disclosure" and perpetrating "fraud on the court" by providing a "speculative narrative" that was "negligent and fraudulent in whole or part". The continuation of this application, even after these damning admissions, is an "unprecedented unlawful action" that underlines the profound disregard shown toward the court and the rule of law.
The Tragic Consequences for a UK Entrepreneur
The disastrous and unlawful investigation has had devastating real-world consequences. Miss Kinder a brilliant UK AI entrepreneur, was forced to sell her innovative startup to an American company to avoid bankruptcy. The business is now valued at a staggering $10 million in the United States, a testament to its success that was tragically undermined by HMRC’s alleged misconduct. Over 100 high-value UK jobs were lost as a direct result of this bungled investigation.
In a desperate effort to obtain justice, Miss Kinder has a High Court injunction application pending before Mr. Justice Calver to compel the release of her funds. The AFO itself, which Ms. Craig claimed justified the freeze, expired on 5 June 2025.
This scandal is not merely about frozen funds; it's a stark indictment of how state agencies can act with impunity, leading to the destruction of legitimate UK enterprise and eroding public trust in the country's legal and business environment.
For further inquiries, contact:
Financial Fraudster News Investigations Team
@FraudsterNews or @therealfinancialfraudsternews or @the_real_FFN
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