Trevor Milton, founder of electric truck startup Nikola, was found guilty by the jury on three counts of fraud. After five hours of deliberation, the jury concluded that he lied to investors in order to raise funds to replenish the company’s authorized capital.
Image source: Bloomberg
Recall that the indictment of 2021 affirmed this video with a working prototype of the electric truck, Nikola One was staged, rolling down a hill and not moving with its own power, as claimed by the company.
According to Reuters, Milton has also been accused of misleading investors about producing batteries for Nikola cars, developing a hydrogen-electric hybrid pickup truck, and advances in car construction. Milton left a position as CEO of Nikola in September 2020.
Milton is charged with one count of securities fraud and two counts of online fraud. He was acquitted of a stock fraud count. Nikola’s founder potentially faces several years in prison.
“Trevor Milton lied to Nikola investors over and over and over again. This is a scam, plain and simple. “ – CNN quotes an excerpt from a statement by prosecutor Damian Williams after the verdict was announced. “Let this case serve as a warning to anyone who carelessly handles the truth to force investors to part with their money. It doesn’t end well. “ added pm.
It should be noted that the lawsuit dealt with the charges against Trevor Milton, but not against Nikola, who continues to operate and recently recalled nearly 100 vehicles. Milton reportedly ignored a recommendation from the company’s chief engineer to delay the launch of the truck, which was not fully ready for production.
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