• Michael Saylor, former CEO of MicroStrategy and a billionaire, appealed to dismiss tax evasion charges but was rejected by Judge Yvonne Williams.
• Whistle-blowers alleged that Saylor was avoiding taxes in the District of Columbia (D.C) while living a playboy lifestyle in the city.
• The now partially-dismissed $150m lawsuit could have seen the whistle-blower pocket as much as $25m from the case.
Michael Saylor’s Tax Evasion Charges Rejected by Judge
Former MicroStrategy CEO Michael Saylor has suffered a big blow as Judge Yvonne Williams rejected his appeal against tax evasion claims. Although, the court did dismiss the allegations that the company and Saylor had conspired to violate the False Claims Act of Washington, D.C.
Whistles Blown on Saylor’s Playboy Lifestyle in D.C
In April 2021, disclosures by whistle-blowers alleged that Saylor was avoiding tax in the District of Columbia (D.C) by pretending to be resident in Florida. Former D.C. Attorney General Karl A. Racine brought the case against Saylor based on these allegations asserting he failed to pay city income taxes between 2005 and 2021 while living a playboy lifestyle in the city which included buying up three prestigious Georgetown penthouses and throwing near nightly parties on multiple yachts he kept in the city boasting DC residents were fools for not maintaining a tax base in Florida with 0% income tax rate.
DC False Claims Act Impact
Uniquely, DC has a relatively new law called False Claims Act which allows citizens to file lawsuits against alleged tax dodgers with potential for whistle- blowers to keep a portion of any proceeds recovered from this now partially dismissed $150m lawsuit which could have seen as much as $25m pocketed by them from this case if successful .
Saylor Denies Allegations
Michael Saylor hits back at allegations categorically denying them “[I] continue to respectfully disagree with District’s position on remaining claims,“ said Saylor.“[Florida is] center of my personal and family life.“ Indeed, with DC Superior Court Judge Yvonne Williams now dismissing more than half case against him it seems first ever courtroom test strange DC False Claims Act could doomed fail but still allowing district pursue part claim relating $25m unpaid taxes interest penalties .
DC Attorney General Impression On Ruling
Speaking on ruling , D . C . Attorney General Brian L . Schwalb implied district could considering appeal implying “Office Attorney General will determine next steps after reviewing opinion”