Trevor Milton, founder and former executive chairman of Nikola, was found guilty of three counts of fraud for deceiving Nikola's investors about its operations and technological capabilities, according to a report by Reuters.
He was convicted of two charges of wire fraud and one count of securities fraud. He was also cleared for one count of securities fraud. His sentence has been scheduled for January 27, 2023. He might serve up to 20 years behind bars.
Painted as a "Con Man"
Prosecutors painted Milton during the trial in federal court in Manhattan as a "con man" who intended to mislead investors about the EV maker's technology, specifically its electric and hydrogen-powered trucks starting in November 2019.
Last year, a federal grand jury indicted Milton on these allegations. The prosecution noted multiple alleged lies, many of which were reportedly told on Twitter, in interviews, and several media appearances.
The prosecution said that he had lied about "nearly all parts of the business" in an effort to boost stock of Nikola.
According to them, some of Milton's false claims included building an electric and hydrogen-powered "Badger" pickup from the "ground up," developing batteries internally despite knowing that the company was buying them elsewhere, and having early success building a "Nikola One" semi-truck that he was aware did not function at all.
Additionally, he was accused of defrauding the owner of a Utah ranch who agreed to sell Nikola stock options as part of the purchase price based on Milton's statements regarding the business.
Both the defense and the prosecution made closing statements to the jury on Thursday in a trial that started on Sept. 13. The prosecution said that Milton was too focused on the company's stock price that he manufactured statements to boost his net worth.
"Elaborate Ruse"
After Hindenburg Research publicly accused Nikola of performing an "elaborate ruse" to deceive the public about the progress of its electric semi, Nikola One, the SEC opened an investigation into the business in 2020.
Hindenburg claimed the truck had actually been "towed to the top of a hill on a remote stretch of road and simply filmed it rolling down the hill" despite the company's video showing the truck "cruising on a road at a high rate of speed."
In the end, the business paid $125 million to resolve the SEC civil penalties in 2021.
Milton's defense attorney said during the trial that the video just had "special effects" and that it's not a "crime" to use them. However, the prosecution also brought up several false claims made by Milton that led to his guilty conviction.
After Milton was found guilty, Nikola announced in a statement that it was glad to put this chapter behind and that it would keep pursuing shareholder value creation.
This article is owned by Tech Times
Written by Joaquin Victor Tacla
