- **Systematic fraud**: From their 1998 IPO through March 2…

metamitya ·

- **Systematic fraud**: From their 1998 IPO through March 2000, MicroStrategy "materially overstated its revenues and earnings"
- **Revenue manipulation**: They improperly recognized revenue upfront from multi-year contracts
- **Example**: A $5 million revenue recognition error with KMart was deemed "material" to their quarterly results
- **Consequences**: Saylor and other executives paid **$11 million to settle SEC fraud charges**