I am not involved in this mugging what-so-ever, but I need to state that this entire mugging took place directly in front of an NPC, mugging rule number 5.
"You may NOT mug in front of NPCs as they are considered witnesses in RP. You may not bypass this rule by attempting to 'pull them away under FearRP in front of an NPC. Do not target people using NPCs/ATMs/Stashes. This includes camping.
In a similar vein you may not camp shipments to mug the owner."
I do not understand at all how the PK'ing admin would approve this.
Not only is this the first rule violated, Omerta and the party being mugged did not have each others F3 violating another rule that you cannot kill innocent bystanders.
"You may not kill or attack people for stumbling onto your mugging or witnessing it. Mug in secluded locations to avoid being seen."
This entire PK seems like a big mistake by the PK'ing admin, I hope Upper Administration genuinely investigates this and takes this appeal seriously.