Trevor Milton, the founder of Nikola, who boasted a revolutionary truck, was convicted of stock fraud and two counts of bank fraud. The ruling is expected to be announced in January.
New York, October 15 (ČTK) – The founder of Nikola, an electric truck manufacturer, Trevor Milton has been found guilty of fraud, the AP agency reported. According to the indictment, he defrauded investors by making exaggerated claims about his company’s progress in producing zero-emission 18-wheel trucks powered by electricity or hydrogen. Milton’s attorney Marc Mukasey said he would appeal the decision.
Prosecutors described Milton as a fraud. According to them, the Nikola company, which Milton founded six years ago in Utah, falsely claimed to have produced their own revolutionary truck. It was actually a General Motors product with the Nikola logo. They said he used social media and media interviews to make false and misleading claims about trucks and technology.
Instead, Milton’s attorney described him as an inspiring visionary who was cornered by overzealous prosecutors. Mukasey pleaded not guilty, saying there was a “surprising lack of evidence” that his client had ever intended to defraud investors.
Milton, 40, denied the allegations. In 2020, he resigned in response to reports of fraud that caused Nikola’s share price to drop. He was charged in July 2021.
The jury found Milton guilty on three of the four counts. In one case for securities fraud and in two cases for bank fraud. The sentence is scheduled for January 27.
In a statement following Milton’s ruling, Nikola said he was pleased to see this chapter closed and that he will continue to work to create shareholder value. Last year, the company agreed to settle a dispute with the US Securities and Exchange Commission over its investor statements for $ 125 million (CZK 3.2 billion).
