DC Attorney General Sues Michael Saylor And His Firm For Alleged Tax Fraud

Michael Saylor, a Bitcoin enthusiast and the co-founder as well as the executive chairman of software-focused firm MicroStrategy, has been sued by District of Columbia Attorney General Karl Racine for allegedly dodging $25 million in district taxes.

The lawsuit also names MicroStrategy as a defendant and accuses the company of conspiring to help Saylor evade taxes.

In a series of Twitter posts Wednesday, Racine revealed that Saylor "has lived in the District for more than a decade but has never paid any DC income taxes" and hence, is being sued for tax fraud.

"We're also suing his company, MicroStrategy, for conspiring to help him evade taxes he legally owes on hundreds of millions of dollars he's earned while living in DC," Racine stated in another tweet.

According to the Washington Post, Racine claims that Saylor, who recently stepped down as the CEO of MicroStrategy, has evaded $25 million in D.C. income taxes. The lawsuit filed on Aug. 22 states that Saylor "knowingly avoided income taxes he owed to the District by fraudulently claiming to be a resident of other, lower-tax jurisdictions while maintaining his domicile and place of abode in the District, including living in a luxury penthouse on the Georgetown waterfront and docking multiple yachts on the District's Potomac riverfront from 2005 to present."

The complaint alleges that Saylor purchased a home in Miami Beach in 2012 and obtained a driver's license in Florida and registered to vote in the southeasternmost U.S. state although his primary residence was in Miami.

The lawsuit also claims that MicroStrategy was also involved in Saylor's fraud and "actively assisted" Saylor "to avoid his obligation to pay taxes owed to the District [Washington]." The software firm agreed to list Saylor's residence on federal tax forms as his house known that he lived in DC.

Both Saylor and MicroStrategy have denied the accusations.

"Although MicroStrategy is based in Virginia, Florida is where I live, vote, and have reported for jury duty, and it is at the center of my personal and family life," Saylor said in a statement. "I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts," he added.