The founder of car manufacturer Nikola was convicted by a U.S. jury of fraud over allegations that he had lied to investors about the company’s technology.
Trevor Milton, 41, was labeled a “con man” by prosecutors who purposefully misled investors as to the nature and capabilities of the electric and hydrogen-powered truck company, Reuters reported. They claim that he used social media, television, print, and podcasts to make false claims about his company’s technology, lauding their capabilities while knowing they didn’t actually work. The jury convicted Milton of one count of securities fraud and two counts of wire fraud but acquitted him on one count of security fraud.
‘ONLY THE BEGINNING OF NIKOLA’S UNRAVELING’: SHARES OF TESLA COMPETITOR PLUNGE AFTER FOUNDER RESIGNS
“Trevor Milton is a con man,” Jordan Estes, assistant U.S. attorney, said, according to the New York Times. “He lied to investors to get their money, plain and simple.”
Milton’s defense likened him to an overexcited parent bragging about a child, the outlet reported, acknowledging that he sometimes spoke in the present tense while addressing things in the future.
Milton is allowed to remain free on a $100 million bond until his sentencing in January. His most serious conviction, one for wire fraud, carries a maximum sentence of 20 years in prison.
In a statement, Nikola said that it was “pleased to close this chapter” and will now move on to research and delivering to shareholders.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Last year, the company agreed to settle with the U.S. Securities and Exchange Commission for $125 million over similar allegations.
