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Nikola founder Trevor Milton faces fraud charges

, the founder and former executive chairman of an electric vehicle company, was indicted by a federal grand jury on two counts of securities fraud and one count of electronic fraud. Milton was accused of lying “about almost every aspect of the business” in order to increase Nikola’s shares.

IN Milton’s statements showed that Nicola was much further than it actually was in terms of having fully functional electric vehicles. This is he had a hand in creating a video that made the Nikola One prototype appear to move on its own when it actually rolls downhill.

Milton falsely claimed that the company had “billions, billions, billions and billions” of pre-orders, and that the indictment was that the company was producing its own hydrogen at prices four times below market prices. He is also accused of falsely claiming that Nikola developed “revolutionary” battery technology, that she develops and manufactures several key components for her electric vehicles in-house, and that “the total cost of owning Nikola’s trucks was 20-30 percent lower. diesel cars “.

Prosecutors say Milton, who stepped down in September, has targeted and misled amateur investors (or “retail investors”). According to the indictment, some of these investors lost hundreds of thousands of dollars.

At the peak of Nicola Milton’s value, he owned about $ 8.5 billion in shares because Notes. The grand jury argues that Milton must surrender property “related to the commission of these crimes.” This could include more than $ 1 billion earned by Milton when the company went public in June 2020.

On Thursday, the SEC also filed securities fraud charges against Milton. The agency went to the district court to force Milton to forfeit “illegal proceeds” and pay a fine. He also called for a lifetime ban on Milton working for a securities company.

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