US: Crypto billionaire hit for $40 million in landmark tax fraud case

Billionaire Michael J. Saylor and MicroStrategy, Inc. have been hit by the Washington, D.C., district attorney’s office in a $40 million fraud case.

Attorney General Brian L. Schwalb took no prisoners in announcing the landmark case and held the wealthy fraudster accountable for his actions. He hit both with a massive bill in the case’s settlement agreement.

Saylor and MicroStrategy defraud the District of Washington D.C
“Tax cheats are freeloading off the backs of hardworking, law-abiding, tax paying District residents while depriving our city of resources needed for critical programs, including public safety, infrastructure, and education,” said Attorney General Schwalb.

A group of whistleblowers flagged that Saylor failed to pay income tax on earnings from 2014 to 2020. Saylor was alleged to have created the veil that he was a resident in another tax district, such as Florida or Virginia.

Saylor pays the price
Had he paid the amount he owed during this more-than-decade-long evasion, it would have been in the region of $25 million. Saylor was also hunted for earnings that he failed to declare or pay income tax on for the period 2005 through 2013.

“Michael Saylor and his company, MicroStrategy, defrauded the District and all of its residents for years. Indeed, Saylor openly bragged about his tax-evasion scheme, encouraging his friends to follow his example, and contending that anyone who paid taxes to the District was stupid. This precedent-setting settlement makes clear that no one in the District of Columbia, no matter how wealthy or powerful they may be, is above the law,” said Attorney General Schwalb.

MicroStrategy would be complicit in the actions of certain employees based on Saylor’s orders. “Employees falsely reported address information on the W-2s the company issued to Saylor and also omitted Saylor’s accurate information from the withholding filings it submitted to the District,” said the D.C. District report.

Saylor and MicroStrategy have now agreed, at the behest of the District of Washington D.C.’s office, to pay will pay $40 million to resolve the tax fraud case.

23 February 2024

EU: Frankfurt wins bid to host new anti-money laundering authority

The German financial centre beat off competition from eight others as the EU puts the final touches to dirty-money reforms. Frankfurt has won the race to host the EU’s prestigious new anti-money laundering

Read More
9 February 2024

US: SEC Imposes New Rules to Increase Oversight of Hedge Funds

The SEC’s decision to impose new rules that require private funds to register as dealers reflects the agency’s commitment to increasing oversight and ensuring market integrity. The Securities

Read More
23 August 2024

GREECE: Internationals Rushing to Buy Properties in Greece Ahead of New Golden Visa Changes

Foreigners are rushing to buy properties in Greece to acquire residency through the Golden Visa Program ahead of the new changes. From September 1, the minimum investment requirement for golden visas

Read More
4 October 2024

CITIZENSHIP: CBI Index 2024 Unveils Leading Economic Citizenship Programmes

Caribbean island of St. Kitts and Nevis secured the top spot for the fourth consecutive year, showcasing its enduring appeal among investors seeking alternative citizenship. Dominica, following closely

Read More