DC Attorney General Sues Billionaire Michael Saylor and Microstrategy Over Alleged Tax Fraud — Seeks $100 Million – Taxes Bitcoin News

The attorney general of the District of Columbia has sued Microstrategy’s co-founder and executive chairman, Michael Saylor, for tax fraud. The lawsuit also names Microstrategy as a defendant “alleging that it conspired to help him evade taxes he legally owes.” Both Saylor and Microstrategy denied the allegations. Microstrategy is seeking over $100 million in unpaid penalties and taxes.

District of Columbia Sues Microstrategy and Michael Saylor, Billionaire Michael Saylor

The Office of the Attorney General (OAG) of the District of Columbia announced Wednesday that Attorney General Karl A. Racine has filed “a tax fraud lawsuit” against Microstrategy’s co-founder and executive chairman, Michael J. Saylor. The lawsuit also names the Nasdaq-listed software company as a defendant “alleging that it conspired to help him evade taxes he legally owes.”

According to the announcement, Saylor is a resident of Washington DC for over ten years and has not paid income tax in D.C. Despite earning millions of dollars.

DC Attorney General Sues Billionaire Michael Saylor and Microstrategy Over Alleged Tax Fraud — Seeks $100 Million

This is the first lawsuit brought under the District’s recently passed False Claims Act that encourages whistleblowers to report information about D.C. residents evading the District’s tax laws by misrepresenting their residences, the announcement explains.

A lawsuit was filed by whistleblowers against Saylor last April. They claimed that Saylor was a billionaire and had defrauded Washington. Saylor also failed to pay the income taxes he legally owed between 2014 and 2020. OAG notice also states that Saylor was accused of tax fraud after an independent investigation. The attorney general office filed its own complaint against Saylor as well as his software company.

The D.C. attorney General:

According to the suit, Saylor was accused of devising a scheme to make it appear that he resided in Florida (a state that doesn’t have personal income taxes), when in fact he actually lived in the District.

Attorney General Racine further detailed that Saylor has publicly called the District’s Georgetown neighborhood home since about 2005, noting that the Microstrategy founder lives in a 7,000-square-foot penthouse on the Georgetown waterfront and has docked at least two of his luxury yachts in the District for long periods of time.

The District’s lawsuit alleges that Saylor avoided paying more than $25 million in D.C. income taxes by claiming to be a Florida or Virginia resident, Attorney General Racine noted, concluding:

OAG will sue Microstrategy for unpaid income taxes, penalties and interest. This could be worth more than $100 millions.

Michael Saylor and Microstrategy Respond to the D.C. Attorney General’s Allegations

Responding to the allegations against him, Saylor told Virginia Business: “A decade ago, I bought an historic house in Miami Beach and moved my home there from Virginia. Although Microstrategy is based in Virginia, Florida is where I live, vote and have reported for jury duty, and it is at the center of my personal and family life.” He elaborated:

Respectfully disagreeing with the District of Columbia’s position, I look forward to an equitable resolution by the courts.

Microstrategy also told the publication: “The case is a personal tax matter involving Mr. Saylor. Microstrategy was not involved in Mr. Saylor’s day to-day activities and didn’t oversee his tax obligations. The company was not involved in Mr. Saylor’s personal tax compliance. The District of Columbia’s claims against the company are false and we will defend aggressively against this overreach.”

Saylor, a vocal bitcoin proponent, stepped down as the CEO of Microstrategy to become the executive chairman last month in order to focus on the company’s bitcoin strategy. The average price for a bitcoin purchased by Microstrategy was $30,664, net of any fees or expenses.

How do you feel about the District of Columbia suing Michael Saylor’s company for tax fraud and seeking more than $100M? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and a Bitcoin evangelist since 2011, was one of the first to discover Bitcoin. His main interests are in Bitcoin security, open source systems, network effects and intersections between cryptography and economy.

Images CreditsShutterstock. Pixabay. Wiki Commons

DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.

Get more Crypto News at CFX Magazine