Nikola founder Trevor Milton sentenced to four years in prison after inflating value of electric truck firm – which once famously rolled a dummy lorry down a hill in promotional video
- Trevor Milton will spend four years behind bars after his conviction today
- Reports claim Milton was in tears as he claimed he was “not a very seasoned CEO.”
- Most famously, the company rolled a hydrogen-powered truck down a mountain for a promotional YouTube video
The convicted founder of electric truck maker Nikola will spend four years behind bars for lying to shareholders about the company's progress.
Trevor Milton was found guilty in October 2022 of misleading investors by claiming Nikola had built a pickup truck from the ground up, developed batteries it bought elsewhere and had early success with a “Nikola One” semi- truck that he knew didn't exist. work.
Most famously, the manufacturer had to admit that it had driven a hydrogen truck downhill for a promotional YouTube. It looked like it was traveling under its own power, but it was just using gravity.
On Monday, the 41-year-old was sentenced by U.S. District Judge Edgardo Ramos in Manhattan, who also ordered him to pay a $1 million fine. Bloomberg reported that he was in tears as he asked the judge to sentence him only to probation, claiming he was “not a very experienced CEO.”
Prosecutors had urged the judge to sentence Milton to 11 years in prison, mirroring the sentence of Theranos founder Elizabeth Holmes, who was similarly found guilty of defrauding investors in her blood-testing startup.
Trevor Milton, the convicted founder of electric truck maker Nikola, will spend four years behind bars for lying to shareholders about the company's progress. He is pictured outside the Thurgood Marshall U.S. Courthouse in September 2022
On Monday, the 41-year-old was sentenced to more than a year by U.S. District Judge Edgardo Ramos in Manhattan. He is pictured outside the Thurgood Marshall U.S. Courthouse in September 2022
Milton's lawyers said he should be placed on probation, arguing that any misstatements were a result of his “deep-seated optimism” in his Phoenix-based company, which was hoped to be the next Tesla. They added that Holmes' case was different because her lies put people in medical danger.
Attorney Marc Mukasey argued that Milton's communications were driven by his “true belief” in the company and not greed, according to Bloomberg.
Mukasey reportedly said, “It wasn't some nefarious attempt to take advantage of people. It was not targeted or targeted at any particular people.”
Milton made the statements about Nikola on social media and in podcast and television interviews as it joined the growing number of technology and EV companies going public through special purpose acquisition vehicles, or SPACs.
Nikola made its market debut in June 2020 and briefly had a higher market cap than Ford Motor Co., giving Milton a net worth of $4 billion.
Milton's lawyers said he should be placed on probation, arguing that any misstatements were a result of his “deep-seated optimism” in his Phoenix-based company, which was hoped to be the next Tesla. He is pictured leaving Manhattan federal court in July 2021
Nikola made its market debut in June 2020 and briefly had a higher market cap than Ford Motor Co., giving Milton a net worth of $4 billion. He is pictured at a press conference in December 2019
But soon reports emerged that Milton was exaggerating the capabilities of one of his prototypes, the Nikola One. He had described it as a fully functional vehicle, despite the fact that it was missing parts, making it undriveable. Two Nikola prototypes are shown
But soon reports emerged that Milton was exaggerating the capabilities of one of his prototypes, the Nikola One. He had described it as a fully functional vehicle, despite the fact that it was missing parts, making it undriveable.
Short-seller Hindenberg published a report accusing the company of misleading about its technology, causing its shares to plummet.
Milton resigned as executive chairman in September 2020 and was indicted by federal prosecutors the following July.
Prosecutors said he wanted to boost the company's stock price and his own net worth.
Milton was convicted on one count of securities fraud and two counts of bank fraud, and acquitted on an additional count of securities fraud.
Nikola agreed in 2021 to pay $125 million to settle civil charges brought by the U.S. Securities and Exchange Commission.
The company's shares are trading for less than $1, down from a peak of more than $60 in June 2020.
Milton is expected to appeal the conviction, having already requested a new trial following the jury's decision. The motion was defeated in August.