MicroStrategy’s Chair Is Being Charged With Tax Fraud

The DC Attorney General is suing cryptocurrency billionaire and MicroStrategy CEO Michael Saylor on tax evasion charges.

Michael Saylor, a billionaire in the tech industry, is accused by District of Columbia Attorney General Karl Racine of avoiding $ 25 million in taxes. The defendants were sued to recover unpaid taxes and penalties in the order of $ 100 million. He allegedly lived in several residences throughout Washington, DC while claiming to be a resident of Virginia or Florida, states that have no reduced rates or no personal income taxes.

The False Claims Act, which was recently amended to hold people accountable for tax fraud, is used to enforce the case against Saylor. Saylor shared her pictures “Home” on social media and tagged you Washington, which the lawsuit used as evidence. Some of these homes are Georgetown penthouse apartments and yachts moored on the Potomac or Georgetown waterfront.

AG Racine commented on the situation and stated:

“DC residents and their employers are now advised that attempts to evade district income tax laws by falsely claiming that they reside in another jurisdiction will be investigated and, if justified, held accountable.”

Saylor and his company MicroStrategy have both been charged by the AG on conspiracy charges to help Saylor evade taxes. The business analysis firm allegedly possessed evidence that Saylor lived in Washington, DC, but decided to hide it.

The lawsuit states,

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

The then CFO of the company reportedly questioned Saylor about his suspected tax avoidance in 2014, according to the material of the lawsuit. According to the lawsuit, after the two had their conversation, Saylor’s pay was reduced to a paltry $ 1. According to the lawsuit, Saylor continued to enjoy benefits including using the company’s plane for the his travels.

Saylor played a key role in his company’s decision to enter the cryptocurrency market and, under his direction, the corporate entity spent a total of $ 4 billion to buy Bitcoin for $ 30,000. He assumed the role of president earlier this month after stepping down as CEO to focus on corporate strategy and Bitcoin initiatives.

Image credit: Shutterstock

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