Trevor Milton, the founder and former CEO of Nikola, has been sentenced to four years in prison for securities fraud by Judge Edgardo Ramos in the U.S. District Court in Manhattan. This marks the end of a turbulent journey for the once-promising electric truck startup.
Key Takeaway
Trevor Milton, the founder of Nikola, has been sentenced to four years in prison for securities fraud. The sentencing follows his conviction for deceiving investors about the development of Nikola’s electric trucks, leading to inflated stock prices and substantial losses for investors.
The Sentencing
The sentencing hearing, which has been delayed four times, concluded with Milton being sentenced to 48 months on each count, served concurrently, and a fine of $1 million. Despite the verdict, Milton is expected to appeal the sentence.
Milton’s Plea for Leniency
During the hearing, Milton made a emotional plea for leniency, citing personal reasons for stepping down from his role at Nikola. He claimed that he left the CEO post to support his wife, who was suffering from a life-threatening illness due to medical malpractice. However, the judge stood firm in the sentencing.
The Fraud Allegations
Milton, 41, was convicted of securities fraud and wire fraud after being found guilty of deceiving investors about the development of Nikola’s electric trucks in order to inflate the company’s stock price. The accusations included false statements about the company’s truck development and batteries, as well as a misleading marketing video that sparked investigations and led to serious losses for investors.
