Michael Saylor is still on the hook for alleged tax evasion, says MicroStrategy filing

The Office of the Attorney General for the District of Columbia successful the United States is moving guardant connected a suit against concern quality steadfast MicroStrategy enforcement seat Michael Saylor related to taxation evasion.

According to a Feb. 28 filing with the U.S. Securities and Exchange Commission, MicroStrategy said the tribunal had not dismissed a assertion against Saylor for failing “to wage idiosyncratic income taxes, involvement and penalties due” pursuing an October 2022 question from the firm. However, the tribunal granted a question dismissing allegations that Saylor — connected his ain and acting successful performance with MicroStrategy — violated the District of Columbia’s False Claims Act.

Former D.C. Attorney General Karl Racine announced a lawsuit against Saylor and MicroStrategy successful August 2022, alleging the co-founder “never paid immoderate DC income taxes” and the institution “conspired” to assistance him successful taxation evasion. At the time, authorities said Saylor owed much than $25 cardinal successful taxes for income earned portion helium was a D.C. resident, but penalties from some the erstwhile main enforcement serviceman and MicroStrategy could full much than $100 million.

It's the 1st suit brought nether DC’s precocious amended False Claims Act encouraging whistleblowers to study residents who evade our taxation laws by misrepresenting their residence. Led by @ChmnMendelson, @councilofdc unanimously updated the instrumentality & gave america enforcement authority.

Racine near the Attorney General’s bureau successful January aft announcing helium would not question re-election. According to the MicroStrategy filing, determination volition beryllium a “status conference” connected the suit connected March 10.

“The last result of this substance is not presently determinable,” said the filing.

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According to the Attorney General’s complaint, MicroStrategy had "detailed information” connected Saylor's residency successful Washington D.C., but the institution collaborated with the erstwhile CEO to "facilitate his taxation evasion" alternatively than reporting it to authorities. Saylor stepped down arsenic the CEO of MicroStrategy successful August 2022, succeeded by past institution president Phong Le.