MicroStrategy’s founder, Michael Saylor, has agreed to pay $40 million to settle a lawsuit alleging tax fraud. According to officials, this agreement is the biggest-ever income tax fraud recovery in the District of Columbia.
Brian L. Schwalb, the attorney general of the district, filed a lawsuit against Saylor and his firm in 2022, accusing him of not paying taxes worth $25 million for more than a decade, despite living in the district. MicroStrategy, allegedly helped him conspire and claim that he lived in Virginia or Florida - states that have a significantly lower tax rate.
The attorney general deemed that the company was aware of his whereabouts, for Saylor was provided with a security detail and drivers.
Furthermore, details entailed in the lawsuit pointed out that Saylor bought and renovated multiple luxury properties in Georgetown. The attorney tied this up to the executive’s social media posts where Saylor had asserted that he would “move back in'' after the renovation wraps up.
According to references in the lawsuit, Saylor had spent time in one of the yachts anchored in the Potomac River, and at another penthouse during the renovations.
Schwalb noted,
“Michael Saylor and his company, MicroStrategy, defrauded the district and all of its residents for years.”
Saylor continues to dispute the charges against him. In a statement, he clarified that he has agreed to settle this matter to “avoid the continued burdens of the litigation.” He said,
“Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia.”
MicroStrategy shares last closed at $1524.49 on Friday. Remaining unaffected by the settlement news, it was up 3.4% during the early trading hours on Monday.
