“Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia,” Saylor said through counsel. He agreed to the settlement to avoid the continued burdens of litigation for himself, his family, and friends.
MicroStrategy Founder $40M Tax Fraud Suit : MicroStrategy’s Involvement
The district claimed MicroStrategy was complicit in the scheme by reporting false address information on Saylor’s tax forms. However, MicroStrategy denied any responsibility, stating it did not manage Saylor’s day-to-day affairs or oversee his individual tax responsibilities. According to a U.S. Securities and Exchange Commission filing, Saylor will pay the settlement amount in full, and the company will not contribute financially.
Origins of the Complaint
The initial whistleblower, Wyoming-based Tributum LLC, alleged unpaid taxes owed by Saylor from 2014 to 2020. The district’s amended complaint in 2023 extended these allegations to include tax years from 2005 to 2013. The complaint detailed Saylor’s lavish lifestyle in the district, including a 7,000-square-foot residence and multiple yachts docked in the district. Social media posts at the time corroborate his residency in the district, contradicting his claims of living in Virginia or Florida.
MicroStrategy Founder $40M Tax Fraud Suit : Legal Representation
The district’s legal team includes Charles Sinks, Norman Anderson, Jason Jones, Sarah M. Levine, and Jessica M. Micciolo from the Office of the Attorney General for the District of Columbia. Saylor and MicroStrategy are represented by Eugene Scalia and Jonathan M. Phillips of Gibson Dunn & Crutcher LLP.
Impact and Implications
This settlement, hailed by Schwalb as the largest income tax recovery in district history, underscores the importance of the False Claims Act in combating tax fraud. Those who falsely claim residency elsewhere to evade district taxes can be held liable for three times the amount originally owed.
