EXPOSED: HMRC Officer Lucy Craig Accused of Wilful Non-Disclosure in £600k Money Laundering Probe
Financial Fraudster News Exclusive Investigation
London, UK – A shocking new revelation has emerged from a high-stakes legal battle, pointing to a potential abuse of power within His Majesty's Revenue and Customs (HMRC). Angelica Kinder, former partner and Person with Significant Control (PSC) at Nathan Paralegals and Company LLP (NPC), has filed a scathing witness statement, accusing HMRC Officer Lucy Craig of deliberately withholding crucial evidence from the court during an 18-month investigation that led to the freezing of over £600,000.
The Frozen Funds: A Money Laundering Accusation Denied
Since 9 February 2024, HMRC has secured an Account Freezing Order (AFO) under the Proceeds of Crime Act 2002 (POCA) against funds held in several Starling Bank accounts, asserting a direct link to money laundering. However, Angelica Kinder [not her real name] vehemently denies these grave accusations, asserting that the £600,827.92 in question was lawfully obtained from NPC and is unequivocally not proceeds of crime.
The Undeniable Truth: Lawful VAT Refund Verified by HMRC Itself
The core of Ms. Kinder's rebuttal lies in the incontrovertible origin of the funds. She states that the frozen sum is part of a larger £993,749.00 VAT refund, legitimately reclaimed by NPC as input tax. Crucially, this substantial VAT refund was not merely claimed; it was subjected to a "rigorous and thorough compliance check" by HMRC Officer Veronica Benjamin in October 2021.
This internal HMRC compliance check, spanning a significant period, culminated in the findings being signed off by a senior HMRC officer. This sign-off, predating Officer Craig's investigation, serves as HMRC's own internal validation of NPC's financial activities and the lawfulness of its VAT claims.
"Given that HMRC itself conducted a comprehensive compliance check and approved NPC's VAT return," Ms. Kinder asserts, "any assertion by Officer Craig that these specific funds are linked to money laundering directly contradicts HMRC's own previous findings and internal procedures."
Nathan Paralegals: A Legitimate International Funder
To contextualise the nature of these funds, Nathan Paralegals and Company LLP is identified as an international litigation funder with its principal office in the Cayman Islands, maintaining a virtual office in the UK. Its legitimate business model involves funding litigation and making strategic investments.
Furthermore, in September 2021, prior to the commencement of Officer Craig's investigation, NPC's board passed a resolution explicitly permitting all UK funds held in their Barclays Bank business account (Sort Code: 20-76-90, Account: 50045497) to be used for litigation funding or investment purposes. This formally sanctioned resolution underscores the legitimate purpose and governance surrounding the funds, even acknowledging that the account may have contained mixed funds – a common and permissible practice for such business accounts.
Officer Lucy Craig's Alleged Negligence and Wilful Non-Disclosure
The most damning accusation in Ms. Kinder's statement centres on Officer Lucy Craig's conduct. Despite an 18-month investigation, Officer Craig allegedly reached an "untrue conclusion" that the funds derived from fraudulent activity and money laundering, stating that "Ms Kinder has not been able to provide sufficient material evidence of the origin and legitimacy of the funds."
Ms. Kinder's witness statement directly refutes this, arguing that Officer Craig was "either aware, or ought to have been aware," of HMRC's own prior compliance check by Veronica Benjamin and the lawful origin of the £993,749.00 VAT return, from which the £600,827.92 was derived.
"Despite this," Ms. Kinder states, "Officer Craig knowingly failed to disclose this crucial information to Suffolk Magistrates' Court when applying for the AFO. This omission is a significant breach of her duty to the court and undermines the integrity of the AFO application process."
HMRC officers are bound by principles of fairness, transparency, and due diligence under POCA. Ms. Kinder argues that by wilfully failing to disclose the lawful origin of the funds, Officer Craig presented a "misleading picture to the Court," leading to an AFO being granted on "potentially incomplete and skewed information."
This "selective disclosure" by Officer Craig, Ms. Kinder contends, "constitutes a serious failure to adhere to the standards expected of an HMRC officer and casts doubt on the validity of the 'reasonable grounds for suspecting' requirement under POCA Section 313." The fundamental question posed is stark: "How can there be reasonable grounds for suspicion of money laundering when HMRC itself had previously verified the legitimacy of the funds' origin?"
Call for Justice: Discharge of AFO and Action Against Officer Craig
Ms Kinder is now urging Suffolk Magistrates' Court to discharge the Account Freezing Order in relation to the £600,827.92. She also calls for "appropriate action regarding the conduct of Officer Lucy Craig," highlighting that such "deliberate and continuing non-disclosure of this material fact... is a grave concern and demonstrates a lack of candour with the Court."
This expose raises serious questions about the integrity of HMRC's investigative practices and the accountability of its officers. FinancialFraudsterNews.com will continue to monitor this developing story closely.
Related Article:
HMRC officer caught in £12,000 tax fraud
Former HMRC employee spared jail after helping ex-husband launder more than £3m
