Nikola Founder Trevor Milton Indicted on Fraud Charges

Fraud Charges Filed Against Nikola Founder Trevor Milton

Trevor Milton, the former CEO and executive chairman of Nikola, and known for his dynamic presentation style, is now facing three separate counts of fraud.

According to the federal indictment revealed by the U.S. Attorney’s Office in Manhattan on Thursday, Milton allegedly perpetrated a deceptive scheme to mislead individual investors for personal financial gain.

Details of the Alleged Fraud

Prosecutors outlined in their complaint that Milton leveraged social media platforms and numerous television interviews to launch a substantial public relations campaign.

This campaign reportedly disseminated inaccurate and misleading details concerning Nikola, even prior to the development of any functional products.

Nikola’s Rapid Rise and Subsequent Scrutiny

The accusations stem from a period of rapid growth for Nikola and its founder, Trevor Milton, who established the company in 2015.

Milton garnered significant attention following the unveiling of the initial prototype, boldly claiming Nikola would deliver “the iPhone of trucking.”

Further announcements regarding additional products, such as the electric pickup truck designated the Badger, were made, alongside ambitious plans for a manufacturing facility in Arizona.

Going Public and the Hindenburg Research Report

In March 2020, Nikola declared its intention to become a publicly traded company through a merger with VectoIQ Acquisition Corp, a special purpose acquisition company.

Following the company’s public offering that summer, Milton actively engaged with retail investors on Twitter, directing communications specifically towards them.

However, in September, shortly after General Motors announced a $2 billion investment, Hindenburg Research, a prominent short-seller, publicly accused Nikola of fraudulent activities.

Investigation and Milton’s Departure

The U.S. Securities and Exchange Commission initiated an investigation in response to the allegations.

Within a two-week period, Milton resigned from his position as executive chairman.

Nikola’s Current Stance

Nikola released a statement on Thursday, distancing itself from Milton, despite him remaining the company’s largest shareholder.

The company did not elaborate further on the specifics of its position.