The US District Attorney for the District of Columbia’s “tax evasion” case against MicroStrategy and Michael Saylor has resulted in a settlement. Saylor and the software company he founded will pay a total of $40 million in penalties.

“Saylor and MicroStrategy defrauded the state”

Speaking after the verdict, District Attorney Brian L. Schwalb was scathing: “For years, Saylor and company have defrauded both the state and the people who live in this state. Saylor developed a system to avoid paying taxes and even bragged about it. Saylor openly recommended his system to his relatives and friends.”

The prosecution alleged that for years Saylor stated that he lived in Florida, which has no state income tax requirements, but continued to live in Washington and used his company MicroStrategy to provide false information. The allegations stated that Saylor had evaded $25 million in taxes.

“I continue to object”

Saylor, who settled with the court, continued to say that he had done nothing wrong and said, “I said it when this case was first filed. I moved to Florida in 2012 and I live there and I still live there today. I have never resided in the District of Columbia and I deny the allegations.”