Submitted by washingtonpost t3_yuxrjr in washingtondc
washingtonpost OP t1_iwbi39q wrote
From reporter Justin Jouvenal: Michael Saylor lived large while allegedly paying no D.C. income tax. Here’s how whistleblowers unraveled what could be one of the largest tax scams in city history.
Michael Saylor amassed a multibillion dollar fortune, splurging to combine three Georgetown penthouses into a palatial 7,000 square-foot residence, snapping up an 154-foot yacht dubbed “Mr. Terrible” and throwing lavish soirees including one where he was draped with an albino python.
All the while, the tech titan did not pay income tax in the District for years and bragged about it to friends, anonymous whistleblowers allege. They said he told people they were “fools” if they did not buy a home in Florida like he did and claim to live there. The state has no income tax.
The whistleblowers’ allegations come in a lawsuit filed in D.C. Superior Court that provides a stunning inside look at the lavish lifestyle of what it calls “arguably the wealthiest person in the District” and an allegedly brazen scheme to defraud the city of tens of millions. It is one of the largest income tax cases in D.C. history.
The whistleblowers, whose legal efforts were joined by District officials in August, stand to earn a staggering payday — possibly $25 million or more — and to return as much as $150 million to city coffers if their case against the Saylor is successful.
Saylor, who denies any wrongdoing, is the first target of a little-noticed revamp of a District law, which now allows citizens to file complaints against alleged tax cheats on behalf of the city and collect a bounty if they win their case.
Such statutes are quickly becoming a powerful tool to hold tax scofflaws among the ultrawealthy and powerful corporations accountable in an era of rising concern about wealth disparity and tax dodges among the wealthiest 1 percent. A similar law in New York has recovered a whopping $467 million in back taxes, according to an analysis noted by D.C. officials. Other states are taking notice.
Saylor, who contends in court papers he has never been a D.C. resident, said in a statement he lives in Florida and it is “the center of my personal and family life.” He is seeking to have the case dismissed.
SummerhouseLater t1_iwbrjp0 wrote
Does the reporter know if his wealth has tanked with the current crypto crash…? I’ve never heard of this person before so am unaware why he would be the “crypto king” from this article other than the first sentence.
brock_h t1_iwbtsre wrote
Michael Saylor's initial wealth comes from Microstrategy. A very successful (though if you ask me now becoming more and more irrelevant) technology company based in the Tysons area. To be clear, Microstrategy still exists and has products used by the federal government and other industries. So, he is not rich because he's a crypto bro, he is a rich guy who became a crypto bro after he was already very rich. It's an important distinction. He is more of a corporate executive and business owner who went a little loopy over it, and he uses his Microstrategy company as a vessel for his Bitcoin holdings.
TrueBirch t1_iwc8ta2 wrote
Good explanation.
I have a related question. I've been a data science manager for years and Microstrategy has never been mentioned in a single meeting. We've hired lots of vendors for different reporting and analytics applications. What is their current niche?
TheDeHymenizer t1_iwcc9fw wrote
> Microstrategy has never been mentioned in a single meeting. We've hired lots of vendors for different reporting and analytics applications. What is their current niche?
They're an ERP solution that stopped growing by 2010 lol they compete with things like Cognos and SAP
brock_h t1_iwcjhe6 wrote
Microstrategy is in use at some large three letter agencies. Just a year or so ago I was almost on a project using it (thankfully I dodged that). I don't claim to really know much about it but from what I saw it was more of a reporting/BI use case for that specific project. It is absolutely not a data science tool and you're not going to see it mentioned alongside things like Databricks, Snowflake, etc. It is very old hat. Frankly, however, I think if Saylor had put half the energy he put into BTC into his company it may still have been relevant (or at least sold to someone relevant) at some point.
[deleted] t1_iwe8s2j wrote
[deleted]
SummerhouseLater t1_iwbv2lv wrote
Thank you!
Gr8WallofChinatown t1_iwbxd44 wrote
He has a "secret" LLC where he is dumping BTC. He used his company to pump his BTC where he could dump.
Microstrategy's executives also mass sell stock prior to them announcing BTC buys.
Basically, Saylor and executives are raiding Microstrategy. Everyone knows that company is dying hence why it is now an unofficial "trading" firm / index for BTC when it's supposed to be a tech product company.
Lalalama t1_iwigm1r wrote
You see his company logo when you go to Tysons.
TheDeHymenizer t1_iwcbw9o wrote
> “arguably the wealthiest person in the District”
Jeff Bezos would like a word with this author lol
[deleted] t1_iwdz7xe wrote
[deleted]
TheDeHymenizer t1_iwe7rs5 wrote
I believe he's here full time now or at the least its his primary residence
Viewing a single comment thread. View all comments