Trevor Milton Faces Fraud Charges Following Grand Jury Indictment
Electric vehicle startup Nikola made headlines last year when it went public after years as a private company. The initial public offering (IPO) showed promise as the company’s value rose steadily. However, in September, a damning report by short-seller Hindenburg Research exposed a series of deceptive practices by the company’s founder, Trevor Milton. The report accused Milton of misleading investors with false statements about Nikola’s products, leading to a significant backlash.
In response to the report, Milton stepped down as chairman of Nikola but continued to be under scrutiny as investigators delved into the extent of his alleged misconduct. After an extensive investigation, the U.S. Attorney’s Office in Manhattan charged Milton with two counts of securities fraud and one count of wire fraud. Today, a federal grand jury formally indicted Milton on all three charges.
The indictment, spanning 49 pages, revealed that Milton targeted individual investors with misleading information through various media platforms like social media, television, print, and podcasts. Prosecutors stated that Milton’s fraudulent actions were driven by a desire for personal gain and to enhance his reputation as an entrepreneur.
Milton has surrendered to authorities and is scheduled to appear in a New York court today. The grand jury has ruled that Milton will forfeit any assets linked to the offenses, including profits amassed from Nikola’s IPO, before his sentencing.
BREAKING: U.S. prosecutors charge Nikola founder Trevor Milton with 3 counts of fraud. @Lebeaucarnews reports. https://t.co/VVzFJUfmRn pic.twitter.com/yl5vwJOWhP
— CNBC (@CNBC) July 29, 2021
Regarding Nikola, the company has sought to distance itself from Milton, emphasizing that the charges are directed at him individually and not the organization as a whole. Nikola stated that they have cooperated with the government’s investigation and remain committed to their business objectives, including the upcoming production of Nikola Tre battery-electric trucks later this year.
