FINANCIAL FRAUDSTER NEWS INVESTIGATION: HMRC Officer Lucy Craig Corruption Scandal Rocks UK, Echoes in Cayman Islands
Georgetown, Cayman Islands – A deepening scandal involving alleged misconduct within His Majesty's Revenue and Customs (HMRC) is sending shockwaves through the international financial community, raising serious questions about the integrity of UK state institutions and the safety of doing business there. Financial Fraudster News has obtained compelling new evidence, including a detailed witness statement from Xavier Davidson, Technical Officer for Nathan Paralegals and Company LLP (Cayman Islands), which paints a damning picture of alleged abuse of power by HMRC Officer Lucy Craig.
This investigation builds upon our previous expose, which first revealed accusations of Officer Craig perverting the course of public justice and fraud by abuse of position. The latest evidence suggests a systematic attempt to unlawfully freeze legitimate funds and destroy a thriving business, all based on what appear to be fabricated claims and a wilful disregard for verifiable facts.
The Heart of the Matter: Lawful Funds Under Unlawful Attack
At the centre of this controversy are funds totalling £600,827.92, frozen under an Asset Freezing Order (AFO) obtained by HMRC since 9 February 2024. HMRC Officer Lucy Craig has asserted these funds are linked to money laundering. However, Xavier Davidson's witness statement, corroborating earlier claims by Miss Angelica Kinder[not her real name] (former partner and PSC at Nathan Paralegals and Company LLP, or "NPC"), provides irrefutable evidence of their lawful origin.
According to Davidson, these funds are part of a larger £993,749.00 VAT refund legitimately reclaimed by NPC. Crucially, this significant refund was not processed lightly. It was the subject of a "protracted and heavily scrutinised investigation" by HMRC itself. Davidson, who personally managed the document flow for NPC (UK) during this period, confirms that HMRC Higher Officer Veronica Benjamin conducted an exhaustive compliance check, leaving "no stone unturned." The refund was ultimately signed off by an even higher, unnamed HMRC Officer in October 2021, leading to HMRC's due repayment in accordance with UK law.
"This meticulous process, culminating in HMRC's own approval and repayment, unequivocally established the lawful origin and legitimacy of these funds," states Davidson. "It is therefore astonishing and deeply concerning that funds, which in part originated from this HMRC-verified VAT refund, are now being subjected to an AFO by another HMRC officer, alleging links to fraud and money laundering."
A Business Destroyed: The £1 Million Loan and Algorithmic Tool
Davidson's statement further reveals the devastating impact of Officer Craig's actions on Miss Angelica Kinder’s, legitimate business ventures. On 9 September 2021, Miss Kinder,, then a PSC at NPC UK, applied for a £1 million loan from NPC UK to fund the development of an algorithmic search tool intended for the commercial market. The NPC UK board duly approved this loan, structuring its disbursement through Special Purpose Vehicles (SPVs) – a standard practice for robust financial governance.
Concurrently, NPC UK had just completed a substantial £5 million litigation funding package for a client, which led to the VAT input tax payment and subsequent refund. On the same day, 9 September 2021, the NPC UK board also authorised that all UK funds would be held at Barclays Bank Plc, with accounts overseen by Miss Kinder,. This demonstrates a clear, legitimate, and documented corporate structure for NPC's UK financial assets.
However, Officer Lucy Craig's investigation has, for the past 18 months, kept Miss Kinder loan funds frozen. This "reckless investigation" has forced Miss Kinder, to sell her business at a "significantly undervalued price" to an entrepreneur. Davidson highlights the immense financial detriment, noting that the business is now understood to be valued in the £5-£10 million price range. "The conduct of Officer Craig, which has all but labelled Miss Angelica Kinder, a criminal based on what appear to be shocking lies, is utterly outrageous," Davidson asserts, adding that he fully expects Miss Angelica Kinder, to seek appropriate damages.
Officer Craig's Alleged Pattern of Abuse: Lying to the Court
The allegations against Officer Lucy Craig extend beyond mere negligence. Financial Fraudster News has previously reported, and Davidson's statement confirms, serious accusations of Officer Craig perverting the course of public justice and fraud by abuse of position by lying to Ipswich Magistrates’ Court.
Specifically, it is alleged that in a witness statement dated 13 March 2024, Officer Craig falsely asserted that a party in the ongoing AFO matter was married to a convicted criminal. Even more alarmingly, she allegedly attempted to link this criminal to a company with a similar name years before it was even incorporated – a company which, in reality, is owned by a US-based trust. These are not administrative errors; they are alleged deliberate acts of misrepresentation that fundamentally undermine judicial integrity.
Breach of Duty and POCA Abuse: A Systemic Concern
Davidson's statement forcefully argues that Officer Craig's conduct represents a profound abuse of the powerful tools granted to HMRC under POCA 2002. POCA Section 313 requires "reasonable grounds for suspecting that the money is money laundering" for an AFO to be granted. Davidson finds it "unfathomable how such 'reasonable grounds' could exist when HMRC's own prior, exhaustive investigation by Officer Veronica Benjamin and a senior officer had already verified the lawful origin of the VAT refund from which these funds partly derived."
The situation is exacerbated by Officer Craig's alleged wilful non-disclosure. NPC's affairs were subject to HMRC scrutiny even before their move overseas, with investigations initiated by Officer Ashley Robinson on 12 May 2021, and continued by Officer Veronica Benjamin until her approval and senior officer sign-off on 27 October 2021. Davidson was directly involved in managing this process. Despite this extensive history of HMRC engagement and verification, Officer Lucy Craig, throughout her 18-month investigation, allegedly failed to disclose this crucial information to Suffolk Magistrates' Court when applying for the AFO. This deliberate omission is a significant breach of her duty to the court and undermines the principles of fairness, transparency, and due diligence that HMRC is legally bound to uphold.
Wider Implications: UK's Business Reputation at Stake
This shocking saga brings into sharp focus whether the UK is truly "worth the effort in relocating a business there in the first instance," as Davidson points out. The potential for legitimate businesses and individuals to be subjected to such reckless and allegedly malicious investigations by state authorities poses a significant threat to the UK's reputation as a stable and predictable financial jurisdiction.
As former HMRC Officer A. Smith, our investigations reporter, previously highlighted, if HMRC employees are "caught fabricating evidence or submitting false statements verified by statement of truth to bolster cases in exercising their duties," they could face severe personal liability, including potential extradition to a US Court. This underscores the extreme seriousness of the conduct alleged against Officer Craig.
Call for Justice and Accountability
Xavier Davidson's witness statement stands in "unwavering support of Miss Angelica Kinder," whom he believes is a "victim of the UK state due to the actions of ill-trained or simply incompetent HMRC Officers who have profoundly abused the powerful Proceeds of Crime Act 2002."
Financial Fraudster News joins the call for immediate action. The Court must consider the overwhelming evidence of the lawful origin of the funds, the prior meticulous HMRC compliance checks, the legitimate corporate governance surrounding NPC's finances, and the egregious conduct of Officer Lucy Craig. We urge the Court to discharge the Asset Freezing Order and for appropriate action to be taken regarding Officer Lucy Craig's conduct. The integrity of HMRC's operations and the fairness of justice demand a transparent and thorough investigation into these grave allegations.
Related Articles:
EXPOSED: HMRC Officer Lucy Craig Accused of Wilful Non-Disclosure in £600k Money Laundering Probe
 Redacted_X_Davidson_Statement_30052025.pdf | [X. Davidson_Witness Statement] | 354 kB |
