The District of Columbia will collect $40 million from the founder of a technology and bitcoin holding company to settle a whistleblower complaint that alleged tax fraud, the district’s attorney general said Monday.
Largest Income Tax Recovery in District History
District Attorney General Brian L. Schwalb announced a settlement with MicroStrategy Inc. and its founder and former CEO, Michael J. Saylor. The $40 million settlement addresses a whistleblower complaint brought in 2021 under the district’s False Claims Act. The suit alleged that Saylor falsely claimed residence in other jurisdictions to evade over $25 million in district taxes on his substantial income.
“Saylor openly bragged about his tax-evasion scheme, encouraging his friends to follow his example, and contending that anyone who paid taxes to the district was stupid,” Schwalb said.
MicroStrategy Founder $40M Tax Fraud Suit : Denial of Allegations
Despite the settlement, Saylor and MicroStrategy deny any wrongdoing. According to the consent order, they maintain that they did not violate any district laws. Saylor, who claims he moved to Miami Beach, Florida, in 2012, continues to dispute the allegations of his residency in the District of Columbia.
