Trevor Milton Pardoned: Nikola Founder Receives Presidential Pardon

Trevor Milton Receives Presidential Pardon

Trevor Milton, the founder of the now-bankrupt hydrogen trucking company Nikola, has been granted a pardon by President Trump. This confirmation was provided to TechCrunch by the White House.

Fraud Conviction and Sentence

Milton’s conviction in October 2022 involved one count of securities fraud, alongside two counts of wire fraud. These charges stemmed from assertions he made to investors concerning Nikola’s advancements.

He received a four-year prison sentence in December 2023. However, he remained free on a $100 million bond while pursuing an appeal of the sentencing.

Nikola's Bankruptcy Filing

The pardon arrives shortly after Nikola initiated Chapter 11 bankruptcy proceedings. The company is currently collaborating with the Delaware bankruptcy court.

Their objective is to facilitate the sale of the business, with an initial target date for completion being mid-April.

Milton's Response

“It is no wonder why trust and confidence in the Justice Department has eroded to nothing,” Milton stated. “I wish judges would stop believing whatever the prosecutors feed them so Americans could trust the justice system again.”

Legal Representation and Trial

A jury delivered the conviction against Milton. He was legally represented during the trial by Brad Bondi, a partner at Paul Hastings and brother to U.S. Attorney General Pam Bondi.

Future Plans

Following his pardon, Milton has expressed intentions to release a documentary. This project is intended to present his perspective on the events surrounding Nikola.

Nikola's Origins and Rise

Milton established Nikola in 2014. The company gained significant attention in 2020.

It became one of the first electric vehicle companies to become publicly traded through a merger with a special purpose acquisition company (SPAC). The stock experienced rapid trading activity, particularly after General Motors announced a $2 billion investment in September of that year.

Allegations and Downfall

The company’s trajectory shifted quickly. Shortly after GM’s announcement, Hindenburg Research, a short-selling firm, published a report alleging fraudulent activities by Milton.

This led to a Securities and Exchange Commission investigation, and General Motors subsequently withdrew from the proposed deal. Milton eventually resigned, claiming during his 2023 sentencing hearing that his departure was to care for his wife’s health.

Prosecution's Claims

Prosecutors from the Southern District of New York brought charges against Milton in July 2021. They alleged he made “false and misleading statements” regarding Nikola’s product development and technology.

These statements were disseminated through social media, television, print media, and podcast interviews. The prosecution asserted that Milton’s intent was to encourage retail investors to purchase Nikola stock.

Financial Repercussions

Following his conviction, a judge ordered Milton to pay approximately $168 million to his former company. This order resulted from an arbitration case between the two parties.

These funds were intended to be utilized within Nikola’s bankruptcy proceedings, specifically to resolve a class action lawsuit filed by shareholders against the company.