Trevor Milton, founder of electric truck startup Nikola, has been found guilty by jury on three counts of fraud. After five hours of deliberation, the jury concluded that he lied to investors in order to raise funds to replenish the company’s authorized capital.
Image Source: Bloomberg
Recall that the 2021 indictment stated that video with a working prototype of the electric truck, Nikola One was staged, as it rolled down a hill, and did not move under its own power, as the company claimed.
According to Archyde.com, Milton was also accused of misleading investors regarding the production of batteries for Nikola cars, the development of a hybrid hydrogen-electric pickup truck and the progress made in building cars. milton left a post of the CEO of Nikola in September, 2020.
Milton is charged with one count of securities fraud and two counts of wire fraud. He was acquitted of one count of securities fraud. The founder of Nikola potentially faces several years in prison.
“Trevor Milton lied to Nikola investors over and over and over once more. This is a scam, plain and simple.” – CNN quotes an excerpt from a statement by prosecutor Damian Williams following the verdict was announced. “Let this case serve as a warning to anyone who recklessly handles the truth to force investors to part with their money. It doesn’t end well.” added the prosecutor.
It should be noted that the lawsuit dealt with charges once morest Trevor Milton, but not once morest Nikola, which continues to operate and recently recalled almost 100 vehicles. Milton reportedly ignored a recommendation from the company’s chief engineer to delay the launch of the truck, which was not fully ready for production.
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