The technology firm MicroStrategy and its pro-Bitcoin founder, Michael Saylor, agreed to a $40 million deal to end a lawsuit accusing him of evading income tax.
The New York Times reported on June 3 that the attorney general for the District of Columbia has reached a $40 million settlement with Saylor and his software company, MicroStrategy.
According to the report, local officials assessed the agreement as the “biggest-ever income tax fraud recovery” in the district. It’s also reportedly the first lawsuit under the district’s amended False Claims Act, which encourages whistle-blowers to file tax evasion claims against residents allegedly hiding residence information.
The District of Columbia sued Saylor and his company MicroStrategy in August 2022, alleging the executive paid no income taxes in the district for at least 10 years he had lived there.
According to the claims, the firm helped Saylor evade more than $25 million in DC income tax. Experts originally suggested that Saylor could see $75 million in penalties.
The tax fraud suit forced Saylor to resign as CEO of MicroStrategy in August 2022, 33 years after founding the firm. He immediately assumed the new role of executive chairman and continued to serve as chairman of the board of directors.
This is a developing story, and further information will be added as it becomes available.
