https://sputnikglobe.com/20221016/founder-of-nikola-found-guilty-of-three-fraud-charges-1101888563.html
Founder of Nikola Found Guilty of Three Fraud Charges
Founder of Nikola Found Guilty of Three Fraud Charges
Sputnik International
Nikola presents itself as “a leading manufacturer of heavy-duty commercial battery-electric vehicles.” The founder and former executive chairman of electric... 16.10.2022, Sputnik International
2022-10-16T01:38+0000
2022-10-16T01:38+0000
2022-10-16T01:38+0000
science & tech
nikola tesla
electric vehicles
fraud
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Milton was accused of defrauding investors and the public about how far along the company was with its electric semi-truck, the Nikola One, among other claims. He was found guilty of two counts of wire fraud and one count of securities fraud. He was acquitted of one additional securities fraud charge. Sentencing is scheduled for January 27, the top charge carries a maximum sentence of 25 years.The Security and Exchange Commission (SEC) began investigating Nikola after short sellers Hindenburg Research accused the company of an “elaborate ruse” and spinning an “ocean of lies” to deceive the public and investors.The highest profile case was a video released by Nikola of the Nikola One traveling on the road at a high rate of speed supposedly on its own power when the video actually showed the semi-truck rolling down a hill after being towed to the top. Nikola paid $125 million to the SEC in 2021 to settle civil charges related to that video.Through YouTube and Twitter, Milton also made false claims about the company producing green hydrogen and the cost that would be involved in producing it. Nikola had not produced any hydrogen at the time and didn’t have a hydrogen plant as Milton claimed. Prosecutors also said that Milton lied about “binding contracts with trucking companies” when the companies had instead signed cancelable reservations for trucks.Nikola, whose shares closed at $3 on Friday after falling from an all-time high of $65, noted that the charges were against Milton himself and not the company.“The company has cooperated with the government throughout the course of its inquiry. We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities,” Nikola’s statement read.
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science & tech, nikola tesla, electric vehicles, fraud
science & tech, nikola tesla, electric vehicles, fraud
Founder of Nikola Found Guilty of Three Fraud Charges
Nikola presents itself as “a leading manufacturer of heavy-duty commercial battery-electric vehicles.” The founder and former executive chairman of electric truck company Nikola, Trevor Milton, was found guilty of three counts of fraud on Friday.
Milton was
accused of defrauding investors and the public about how far along the company was with its electric semi-truck, the Nikola One, among other claims. He was found guilty of two counts of wire fraud and one count of securities fraud. He was acquitted of one additional securities fraud charge. Sentencing is scheduled for January 27, the top charge carries a maximum sentence of 25 years.
The Security and Exchange Commission (SEC) began investigating Nikola after short sellers Hindenburg Research accused the company of an “
elaborate ruse” and spinning an “ocean of lies” to deceive the public and investors.
The highest profile case was a video released by Nikola of the Nikola One traveling on the road at a high rate of speed supposedly on its own power when the video actually showed the semi-truck rolling down a hill after being towed to the top. Nikola paid $125 million to the SEC in 2021 to settle civil charges related to that video.
Through YouTube and Twitter, Milton also made false claims about the company producing green hydrogen and the cost that would be involved in producing it. Nikola had not produced any hydrogen at the time and didn’t have a hydrogen plant as Milton claimed. Prosecutors also said that Milton lied about “binding contracts with trucking companies” when the companies had instead signed cancelable reservations for trucks.
“Trevor Milton lied to Nikola’s investors — over and over and over again. That’s fraud, plain and simple, and this Office has no patience for it. Never has, never will,” US Attorney Damian Williams said of the conviction through the South District of NY Department of Justice Twitter account. “Let this case serve as a warning, anyone who plays fast and loose with the truth to get investors to part with their money. It won’t end well.”
Nikola, whose shares closed at $3 on Friday after falling from an all-time high of $65, noted that the charges were against Milton himself and not the company.
“The company has cooperated with the government throughout the course of its inquiry. We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities,” Nikola’s statement read.
