Nikola founder Trevor Milton found guilty of fraud over statements he made while CEO

Trevor Milton, the laminitis and erstwhile president and CEO of electrical dense motortruck shaper Nikola, was recovered blameworthy successful national tribunal connected Friday of 3 of 4 counts of fraud relating to mendacious statements helium made to thrust up the worth of Nikola's stock.

Milton was charged with 2 counts of securities fraud and 2 counts of ligament fraud, each related to statements helium made astir Nikola's concern portion helium was president and CEO of the company. Jurors recovered him blameworthy connected 1 number of securities fraud and some of the ligament fraud counts.

Milton faced up to 25 years successful situation if convicted connected each 4 counts.

The U.S. Attorney's Office successful Manhattan had alleged that Milton lied astir "nearly each aspects of the business" helium founded successful 2014 during his clip starring the company. Those lies, prosecutors said, were intended to induce investors to bid up the terms of Nikola's stock.

"On the backs of those guiltless investors taken successful by his lies, helium became a billionaire virtually overnight," Assistant U.S. Attorney Nicolas Roos said successful his opening connection successful September.

Nikola's banal terms concisely surged to implicit $90 per stock successful June 2020, conscionable days aft it went nationalist via a merger with a special-purpose acquisition company. For a abbreviated period, Nikola – a institution with nary gross – was much invaluable than century-old Ford Motor.

That ambitious valuation didn't last. Nikola's shares fell sharply erstwhile Milton was forced retired of the institution successful September 2020, aft the company's committee of directors recovered that immoderate of the fraud allegations made by short-seller Hindenburg Research had merit.

The U.S. Department of Justice and the Securities and Exchange Commission some opened investigations successful the months pursuing Milton's departure. In July of 2021, a expansive assemblage indicted Milton connected three counts of fraud; a fourth count was added successful June of 2022.

Nikola itself wasn't facing charges successful this case. The SEC had brought related civilian charges against the institution past year. Those charges were settled successful December aft Nikola agreed to wage a $125 cardinal fine. Although Milton inactive owns Nikola stock, the institution had different chopped ties with him.