A massive tax avoidance lawsuit brought against former MicroStrategy CEO Michael Saylor has dealt a major blow. Judge Yvonne Williams dismissed part of the case as false claims.
In April 2021, revelations It was alleged by informants that Saylor was evading taxes in the District of Columbia (DC) by pretending to be a resident in Florida.
Former DC Attorney General Carl A. Racine brought a case against Saylor on the basis of these allegations. Racine claimed that while living a playboy lifestyle in the city, Saylor failed to pay city income taxes between 2005 and 2021.
The whistle blows on Saylor’s playboy lifestyle in DC
DC has a relatively new law called the False Claims Act that allows citizens to file lawsuits against alleged tax evaders. Specifically, it allows the whistle-blower to keep a share of any proceeds recovered.
The now partially dismissed $150m lawsuit could have pocketed as much as $25m for the whistle-blower.
Disclosures from whistle-blowers allege Saylor bought three prestigious Georgetown penthouses. Which were later merged into a large 7,000 sq ft luxury apartment.
Claiming to have his own private home in Florida, it is alleged that Saylor lived at the address almost full-time. This is evidenced by the most of the nightly parties that happen on the many yachts that they keep in the city.
It is rumored that Saylor would claim that DC residents were foolish for not maintaining a tax base in Florida, which has a 0% income tax.
Michael Saylor hits back at allegations
The now famous bitcoin maxi categorically denies the allegations.
,[I] continue to respectfully disagree with the District’s position on the remaining claims,” said saylor,
,[Florida is] The center of my personal and family life.”
In fact, DC Superior Court Judge Yvonne Williams has now dismissed more than half of the case against Saylor. It looks like the first court test of the strange DC False Claims Act may be doomed to fail.
Williams ruled that the district could still collect a share of the claim relating to $25m in unpaid taxes, along with interest and penalties.
Speaking on the verdict, the DC Attorney General Brian L. Schwab Implied that the District may consider an appeal.
“The Attorney General’s Office will hold accountable any tax evading individuals or businesses, including by pursuing Mr. Saylor’s claims involving the unmet tax burden,” he said. schwab,
“With regard to the decision on the False Claims Act claims, we are considering our legal options.”