FINANCIAL FRAUDSTER NEWS INVESTIGATION: Starling Bank's Unlawful Freezing of Funds Draws Scrutiny, Executive Board Under Pressure
Georgetown, Cayman Islands – Financial Fraudster News can today reveal a shocking escalation in the ongoing saga of unlawfully frozen funds, as Starling Bank stands accused of wilfully refusing to release assets to account holder Angelica Kinder (Name Withheld for Legal Purposes). This refusal persists despite the clear expiration of a highly questionable Account Freezing Order (AFO) and legal advice, which appears to have been influenced by the controversial HMRC Officer Lucy Craig, directly breaching UK law. This ongoing refusal is causing significant and demonstrable harm to Ms. Kinder.
The core of this escalating dispute centres on Starling Bank's fundamental misinterpretation, and alleged abuse, of the Proceeds of Crime Act 2002 (POCA). Funds belonging to Ms. Kinder were initially frozen under an AFO obtained by HMRC Officer Lucy Craig. However, according to Ms. Kinder's legal correspondence, which Financial Fraudster News has obtained, this AFO has definitively expired.
"Let me be absolutely clear: the Account Freezing Order concerning my funds has expired," states Angelica Kinder in a recent urgent communication to Starling Bank. "An AFO is a temporary measure, typically with a defined duration. Once this period lapses, the order ceases to have any legal effect, and the bank is no longer lawfully obligated to hold the funds."
Legal Experts Condemn Bank's Rationale: An Expired Order Holds No Power
Starling Bank, in its latest response, has inexplicably cited Section 303Z14(6) of POCA 2002, claiming that an "application for forfeiture" by HMRC's Lucy Craig allows them to continue holding the funds. However, Ms. Kinder robustly refutes this interpretation, asserting it is "entirely misplaced." Legal experts consulted by Financial Fraudster News unequivocally confirm that this section only applies to an AFO that is active and unexpired when a forfeiture application is lodged. It does not, in any way, revive an expired AFO or create a new legal basis for a bank to freeze funds where the original order has lapsed.
The severity of Starling Bank's actions is further amplified by Ms. Kinder's direct contact with the relevant court, which has confirmed no Account Forfeiture Notice has been lawfully lodged, nor is any court date for such proceedings in the court's diary. This directly contradicts the information apparently conveyed to Starling Bank by HMRC's Ms. Craig, suggesting a disturbing lack of due diligence or, worse, complicity in maintaining an unlawful freeze.
Barrister Rachel Gulliver of Church Court Chambers (name withheld for legal purposes), a legal expert on AFOs, emphatically confirms the legal position: "An account freezing notice alone does not give a bank the authority to freeze an account. It must be accompanied by a court order or legal authority to freeze the account." Ms. Gulliver elaborated that while banks can freeze accounts based on legal directives, reasonable grounds to suspect fraud, or to comply with legal requirements like a valid AFO, a notice itself is insufficient. "While a notice may signal a potential problem, it's a court order or other legal authority that actually authorizes the bank to freeze the account," she stated. Starling Bank's continued action, therefore, appears to be operating without the requisite legal authority.
The Shadow of Lucy Craig: HMRC Officer Accused of Perverting Justice
This alarming situation is not isolated. Financial Fraudster News has previously exposed serious allegations of misconduct against HMRC Officer Lucy Craig, including accusations of perverting the course of public justice and fraud by abuse of position. Our investigations, supported by detailed witness statements (including from Xavier Davidson, Technical Officer for Nathan Paralegals and Company LLP (Cayman Islands), formerly UK), have shown that the purported grounds for the initial AFO against Ms. Kinder's funds have been widely discredited.
Specifically, Officer Craig is accused of wilfully failing to disclose to the court during an 18-month investigation that the funds were from a previous lawfully obtained VAT return totalling £993,749.00, which had been subject to a rigorous compliance check by HMRC Officer Veronica Benjamin in October 2021 and duly signed off. These funds were transferred to a UK company account at Barclays Bank Plc and authorised by a board resolution for legitimate purposes, including funding an algorithmic search tool and litigation investments. Officer Craig is also alleged to have lied to Ipswich Magistrates’ Court, falsely asserting a party was married to a convicted fraudster and attempting to link a company to criminality years before its incorporation.
It is highly concerning that Starling Bank's ongoing refusal to release funds seems to be based on advice and information stemming from an HMRC officer who herself faces such grave accusations of misconduct and a lack of candour with the judiciary.
Starling Bank's Executive Board Under Scrutiny
The decision to maintain this allegedly unlawful freeze appears to have been approved at the highest levels of Starling Bank. Financial Fraudster News understands that the bank's executive board, including David Sproul (Chair of the Board and Chair of the Board Nomination Committee), Raman Bhatia (Executive Director and Group Chief Executive Officer), Declan Ferguson (Executive Director and Group Chief Financial Officer), and Tracy Clarke (Senior Independent Director and Chair of the Board Remuneration Committee), have endorsed this stance. This decision was reportedly taken on advice from solicitor Clare Stothard, a partner at TLT Solicitors LLP. The involvement of such senior figures places significant corporate responsibility on Starling Bank for the continuing harm inflicted.
Devastating Impact and Imminent Legal Action
Starling Bank's ongoing refusal to release the funds, despite the AFO's expiry, the absence of any valid continuing order, and the public refutation of its underlying basis, constitutes an unlawful deprivation of assets. This persistent inaction has caused Angelica Kinder severe and quantifiable harm, including the forced sale of her legitimate business at a significantly undervalued price – a business now reportedly valued between £5-£10 million.
Ms. Kinder's legal team is now preparing to commence formal legal proceedings for unlawful withholding of funds, seeking full restitution and substantial damages for financial loss, inconvenience, and distress, including an urgent injunction. In a final warning, Ms. Kinder stated, "Your bank's ongoing refusal to release my funds... constitutes an unlawful deprivation of my assets. This persistent inaction is causing severe and quantifiable harm, for which Starling Bank will be held fully accountable." She has given Starling Bank until 14:00 BST today, 5th June 2025, to comply, failing which legal action will be initiated immediately.
This expose highlights a troubling precedent where a major financial institution, after seemingly relying on discredited information from a controversial HMRC officer, continues to defy clear legal principles, causing demonstrable harm to an individual. Financial Fraudster News will continue to monitor this developing story closely, advocating for transparency, accountability, and the immediate release of unlawfully frozen funds.
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EXPOSED: HMRC Officer Lucy Craig Accused of Wilful Non-Disclosure in £600k Money Laundering Probe
 Redacted_23 Sep 2021_VAT Compliance Letter .pdf | [Redacted_23 Sep 2021_VAT Compliance Letter .pdf] | 379 kB |
| Redacted_X_Davidson_Statement_30052025.pdf | [X. Davidson_Witness Statement] | 354 kB |
