• MicroStrategy’s CEO is being sued for tax evasion

  • The DC attorney general has filed a tax evasion lawsuit against cryptocurrency billionaire and MicroStrategy chair Michael Saylor.

    Saylor lives in either Washington or Florida.

    The District of Columbia Attorney General, Karl Racine, has charged tech billionaire Michael Saylor with dodging $25 million in taxes. The action seeks unpaid taxes and penalties in the amount of $100 million from the defendants. According to the lawsuit, he was living in numerous separate homes throughout D.C. while claiming to be from Virginia or Florida, which do not have reduced rates or zero personal income tax.

    The case against Saylor is being prosecuted under the recently amended False Claims Act, which holds persons liable for tax evasion. Saylor’s social media profiles were used as evidence in the lawsuit, where he posted photographs of his “house” while tagging Washington. Among these houses are a Georgetown penthouse apartment and a yacht on the Georgetown waterfront or the Potomac River.

    AG Racine commented on the situation, saying,

    “D.C. residents and their employers are now on notice that attempts to evade the District’s income tax laws by falsely claiming that they reside in another jurisdiction will be investigated and, if substantiated, held accountable.”

    MicroStrategy is also mentioned in the lawsuit.

    The AG has charged Saylor as well as his company MicroStrategy, alleging that the latter collaborated to assist Saylor in evading taxes. The business analytics firm allegedly had evidence proving Saylor’s D.C. residency that it opted to hide.

    According to the lawsuit,

    “OAG also alleges that MicroStrategy had detailed information confirming that Saylor was, in fact, a DC resident, but instead of accurately reporting his address to local and federal tax authorities and withholding DC taxes, collaborated with Saylor to facilitate his tax evasion.”

    According to the lawsuit, Saylor was challenged about his alleged tax avoidance by the company’s then-CFO in 2014. According to the lawsuit, Saylor’s compensation was slashed to a mere $1 after the two discussed it. According to the lawsuit, Saylor has continued to collect fringe perks such as using the company plane for personal travel.

    Saylor’s Bitcoin Deal

    Saylor was important in his business’s entry into the cryptocurrency market, and under his leadership, the company spent a total of $4 billion to stock up on Bitcoin at roughly $30,000. He stepped down as CEO and became Chairman earlier this month to focus on the company’s strategy and Bitcoin operations.

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