Nikola founder Trevor Milton charged with securities fraud

New York — Nicola’s founder and former executive chair surrendered in New York on Thursday with criminal accusations, claiming he made false and misleading statements about being powered by electricity and hydrogen. truck Fool some novice investors trying to make money to make up for the income lost during a startup, pandemic.

Trevor Milton Resigned from Nicola In September in a fraud allegation. At the time, Milton said he would protect himself from accusations that Nicola had rejected allegations that the company had made false allegations about its vehicle.

In an unsealed indictment in federal court in Manhattan on Thursday, prosecutors charged Milton with two securities frauds and one transfer fraud.

From November 2019 to September last year, he was accused of making false and misleading statements through social media and television, printed matter and podcast interviews on the company’s product and technology development.

According to the indictment, the claim was aimed at individual investors with no professional experience in the securities market. A message asking for comment was left to his lawyer.

Milton was scheduled to appear for the first time in the afternoon.

Nikola’s share price fell 7% before Thursday’s opening bell.

According to the indictment, individual investors affected by misleading statements Stock market A person who initiates a transaction during a coronavirus pandemic to replenish or make up for lost income, or to spend time during a blockade due to a health crisis.

Many indictments were made by Milton as false and misleading, including his early success in prototyping a “fully functional” semi-track known as “Nikolawan.” Quoted a public statement from. Milton knew that the prototype was inoperable, it said.

Milton also misleaded investors when he said Nicola designed and manufactured electricity and hydrogen as power sources. pick-up truck According to the indictment, when using Nicola’s parts and technology and finding out that it wasn’t true, it was known as “from scratch” to “badger.”

The indictment alleged that he also misleaded investors when he said that Nicola was producing. hydrogen Cut costs and “at any cost when Milton learns that Nicola isn’t producing any hydrogen.”

He also said he told investors that the company had developed. battery When Milton learned that Nicola was getting those parts from a third party, the other important components themselves.

In addition, Milton said that reservations made for future delivery of Nicola’s semi-trucks could be canceled at any time for most of those orders, and when Nicola had no plans to produce immediately. He claimed to be a binding order representing billions of dollars in revenue.

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Nikola founder Trevor Milton charged with securities fraud

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