Trevor Milton, the founder of electric truck automaker Nikola, has been convicted of fraud in federal court on Friday.
Milton faced four counts of fraud that he falsified statements to investors. He faced two counts of securities fraud and two counts of wire fraud, related to statements he made as CEO of Nikola.
The founder will be sentenced on January 27, 2023, and if convicted on all four counts, he may face up to 25 years in prison, reports CNBC.
“Trevor Milton lied to Nikola’s investors — over and over and over again. That’s fraud, plain and simple,” said Damien Williams, the U.S. Attorney for the Southern District of New York, adding this case should, “serve as a warning” to others who try to deceive investors.
Allegations against Milton were that he lied about the entire business, to pump up the company’s stock, which at one point was worth more than Ford, despite having zero revenue.
Nikola was called a fraud by Hindenburg Research back in September 2020. The company, led by Milton at the time, admitted it used third-party equipment in a truck promo video that showed the latter driving on a road. But in fact, the truck was actually just rolling down a hill. Others went to the site and verified the slight grade, essentially verifying Hindenburg’s claims.
#NikolaChallenge Completed.
Started just after the cattle guard. Speed at N. Willow cross road was 42mph. Top speed 48mph.
Will return w/ Model 3 soon. Went off-roading afterward this round.
Who's next? @WholeMarsBlog? 🙂
Will reply to this w/ unedited vid. @InsiderNikola pic.twitter.com/7zyZRHY6Dv
— Nick (@Nick_P3D) September 13, 2020
Shares of Nikola Corp traded as high as $90 in June 2020–making Milton a billionaire based on his ownership of shares–but have since fallen to $3 per share as of writing.
BREAKING: After deliberating for less than a day, the jury has found Nikola founder Trevor Milton guilty on 3 counts of fraud. $NKLA https://t.co/tgMYWeyiDG
— Hindenburg Research (@HindenburgRes) October 14, 2022
