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Thursday, 29 July 2021 19:24

Nikola Founder Trevor Milton Indicted on 3 Counts of Fraud

Written by Simon Alvarez, Teslarati

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A federal grand jury has indicted Nikola Motor founder and former CEO Trevor Milton on three counts of criminal fraud for allegedly lying about “nearly all aspects of Nikola’s business.”

The indictment was unsealed July 29.
 
Milton, whose ambitious vision of a zero-emission, hydrogen-powered trucking revolution caught the interest and admiration of many---including Tesla skeptics and short-sellers---was accused by the U.S. Attorney’s Office of two counts of securities fraud, including making false statements about the company, and wire fraud.

 

As noted in a CNBC report, prosecutors focused on how Milton allegedly lied about Nikola’s products, the company’s technology and its future sales.

 

“Milton’s scheme targeted individual, non-professional investors---so-called retail investors---by making false and misleading statements directly to the investing public through social media and television, print and podcast interviews,” prosecutors stated, adding the former Nikola executive was “motivated to engage in the fraudulent scheme in order to enrich himself and elevate his stature as an entrepreneur.”

 

Milton has reportedly surrendered to authorities, and he is expected to be in a New York court July 29, per information related by U.S. Attorney’s office spokesperson Nicholas Biase

 

According to the grand jury, Milton shall forfeit all properties traceable to the commission of his offenses. These would likely include the more than $1 billion Milton acquired after Nikola Motor went public last year.

 

Milton’s spokesperson has so far declined to...


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