FINANCIAL FRAUDSTER NEWS EXCLUSIVE: John-Paul Marks' Baptism of Fire – HMRC Permanent Secretary Faces Crisis Amid Claims of 'Wilful Gross Misconduct' and Fraud on the Courts by Senior Officials
LONDON, UK – 26 June 2025 – John-Paul Marks, the newly appointed Permanent Secretary and Chief Executive at His Majesty's Revenue and Customs (HMRC), faces an immediate and profound leadership test. Financial Fraudster News Investigations, with exclusive access to unfolding court documents, can today reveal a sprawling scandal involving alleged wilful gross misconduct by Senior HMRC Solicitor and team manager John Wray and HMRC Fraud Investigator Lucy Craig.
The conduct of the appalling 18-month investigation is not merely negligent; it stands accused of being a blatant "witch hunt" born from "monumental failings in basic investigative housekeeping," a "total lapse in judgment," and a shocking willingness to perpetrate "fraud on the courts rather than admit wrongdoing."
This explosive revelation, which has already entangled Starling Bank Ltd, paints a damning picture of alleged systemic failures and deliberate deception at the heart of the UK's tax authority.
The Rotten Core: Wray & Craig's 'Witch Hunt' and Alleged Fraud on the Court
At the epicentre of this crisis is the £600,827.92 belonging to Angelica Kinder (name withheld for legal purposes). These funds, frozen since 9 February 2024 under a highly contentious Account Freezing Order (AFO), were allegedly targeted by HMRC Officer Lucy Craig based on false claims of money laundering made to Suffolk Magistrates' Court.
FFN's investigation, corroborated by Ms. Kinder's witness statements and robust legal correspondence, reveals that Ms. Craig, and by extension Senior Solicitor John Wray, deliberately failed to disclose critical exculpatory evidence that would have immediately proven the lawful origin of these funds. The money, Ms. Kinder has repeatedly confirmed, derived from a legitimate VAT refund of £993,749.00 obtained by Nathan Paralegals and Company LLP (NPC). Crucially, this VAT refund was not only lawful but had been subjected to a "rigorous and thorough compliance check" by HMRC Officer Veronica Benjamin in October 2021, receiving full senior HMRC approval.
"The alleged deliberate non-disclosure of HMRC's own prior verification by Ms. Craig and Mr. Wray to the Magistrates' Court constitutes a profound 'fraud on the court'," states Ms. Kinder's legal team. Mr. Wray and Ms. Craig stand accused of "doubling down with their lies," rather than admitting to the fundamental flaws in their 18-month, taxpayer-funded investigation.
The legitimacy of Ms. Kinder's funds is further underscored by the fact that NPC is a legitimate international litigation funder. Its ultimate parent (Distressed Debt Xchange Group LLP) is part of a larger private company that recently saw a seven percent stake acquired for over £1.4 billion, evidencing the absolute legitimacy and scale of its operations.
Starling Bank's Culpability: A Partner in Alleged Collusion and Law-Breaking
Starling Bank, the digital challenger institution led by Group Chief Executive Officer Raman Bhatia, finds itself deeply mired in this scandal. The bank, which initially contacted HMRC regarding Ms. Kinder's funds, has stubbornly refused to release her assets, despite the AFO having definitively expired on 5 June 2025.
Alarmingly, Starling Bank has admitted to FFN that it sought "legal advice" directly from Lucy Craig and John Wray – the very HMRC officials implicated in the alleged fraudulent AFO investigation. This admission points to a disturbing level of collusion, with Starling Bank now facing accusations of "working hand in glove" with HMRC in a "cooperation overkill" to unlawfully withhold Ms. Kinder's legitimate funds.
Ms. Kinder's legal correspondence highlights Starling Bank's alleged defiance of fundamental legal principles. She asserts that a bank's obligation to release funds upon AFO expiry is "a direct and self-executing legal duty," not contingent on HMRC's assertions. Starling Bank's reliance on Ms. Craig's "opinion as the law," despite the AFO's expiration, is seen as a clear demonstration that it is "all but in name acting as an organ of a state entity that is desperately trying to cover [up] one of the most reckless investigations carried out by two HMRC employees."
The bank's actions, under Raman Bhatia's leadership, are described as a "profound crisis of trust and accountability," causing "immeasurable pain and significant financial loss" to Ms. Kinder while blatantly disregarding the law.
Judicial Hammer Falls: Mr. Justice Calver Demands Answers – Deadline Looms
The judiciary has now directly intervened. Ms. Kinder, in her relentless pursuit of justice, filed an urgent Injunction Application to compel the release of her legitimate funds. High Court Judge Mr. Justice Calver has reviewed the application and issued a critical directive on 25 June 2025:
(1) The Defendant [Starling Bank] must be served with this application and the grounds for injunctive relief.
(2) The Account Freezing Order itself and any relevant correspondence from the defendant [Starling Bank] relating to that Order must be lodged by the Claimant [Starling Bank, in the context of the AFO application] on CE File or otherwise be provided to the court forthwith.
(3) The defendant bank must state as a matter of urgency and in any event no later than 1pm on Monday 30 June 2025 whether it opposes this application or not and if it does why it does.
This order from Mr. Justice Calver is a direct and unequivocal demand for Starling Bank to produce evidence of a valid AFO that it relies on to withhold Ms. Kinder's money. It underscores the court's grave concern regarding the bank's current position and its patent failure to provide lawful justification. Ms. Kinder's recent witness statement confirms her full compliance with the court's directive, despite Starling Bank's continued non-cooperation.
The deadline is now set: Starling Bank has until 1pm on Monday, 30 June 2025, to comply with Mr. Justice Calver's order. Failure to do so will likely result in severe consequences, including potential further adverse orders and intensified legal action for the unlawful withholding of funds.
Challenges for John-Paul Marks: A Baptism of Fire
This escalating scandal presents an immediate and formidable challenge for John-Paul Marks, the newly appointed Permanent Secretary and Chief Executive at HMRC. He inherits an agency grappling with accusations of its senior legal and investigative personnel engaging in alleged wilful gross misconduct and actively perpetrating fraud on the courts.
Marks' leadership will be tested by the urgent need to address:
The profound allegations of professional negligence and deliberate falsehoods against Mr. Wray and Ms. Craig.
The alarming implications of HMRC officers allegedly choosing to "fraud on the courts than to admit wrong."
The damage to HMRC's reputation and its ability to conduct fair and lawful investigations.
The need for internal accountability and a review of the "cooperation overkill" with financial institutions like Starling Bank.
This case is no longer just about frozen funds; it has become a litmus test for the integrity of UK state institutions and the accountability of their most senior officials. Financial Fraudster News will continue its tenacious reporting on this critical situation, exposing every layer of alleged corruption and demanding full accountability from all parties involved.
For further inquiries, contact:
Financial Fraudster News Investigations
Now on X: @therealfinancialfraudsternews or @the_real_FFN
Related Articles:
HMRC Officer Lucy Craig Accused of Wilful Non-Disclosure in £600k Money Laundering Probe
