Joe Raedle
District of Columbia Attorney General Karl Racine said his office filed a lawsuit Wednesday against MicroStrategy (NASDAQ:MSTR) and its chairman, Michael Saylor, alleging tax evasion.
MicroStrategy (MSTR) stock, which had risen as much as 4.6% earlier in the session, is down 4.3% in midafternoon trading.
“We’re suing Michael Saylor — a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes — for tax fraud,” Racine said via tweet.
He also alleged that MicroStrategy (MSTR) conspired “to help him evade taxes he legally owes on hundreds of millions of dollars he’s earned while living in DC.”
The DC AG said it’s the first lawsuit under the city’s recently amended False Claims Act, which encourages whistleblowers to report residents who evade the district’s tax laws by misrepresenting their residence.
“With this lawsuit, we’re putting residents and employers on notice that if you enjoy all the benefits of living in our great city while refusing to pay your fair share in taxes, we will hold you accountable,” Racine said.
MicroStrategy (MSTR) didn’t immediately respond to a request for comment.
Earlier this month, the software company that keeps bitcoin (BTC-USD) on its balance sheet separated the roles of chairman and CEO.
Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.