Nikola founder Trevor Milton accused of making false statements

Trevor Milton Update

Nikola founder Trevor Milton has been accused by US federal prosecutors of making false statements to investors as part of their investigation into the electric truck startup.

On Thursday, the U.S. Attorney’s Office in Manhattan charged Milton. Step down When he became chairman of Nikola last year, he was suspected of “using false and misleading statements” to deceive investors into buying the company’s stock.

The indictment stated that federal prosecutors accused Milton of direct conversations with retail investors through social media, television, print and podcast interviews as a goal. It said that many of these investors had no previous trading experience, and they bought stocks to make up for lost income from the pandemic or to pass time during the lock-in period.

The indictment stated: “After some of Milton’s statements were revealed to be false and misleading, the value of Nicholas’ stocks, including those held by retail investors, plummeted.”

“As a result, some retail investors targeted by the Milton fraud plan have suffered tens of thousands or even hundreds of thousands of dollars in losses, including in some cases, their retirement savings or the loss of funds borrowed to invest in Nicholas. “

Nikola merged with VectoIQ Acquisition to become a public company in June last year. VectoIQ Acquisition is a blank check company founded by former GM executive Stephen Girsky.

Its stock price soared to $80 after its public debut, and then released Short seller report The Hindenburg Research Company claimed that the company was a “complex fraud.”An internal investigation by the company found that all or part of Milton’s nine statements “Inaccurate”.

Milton’s spokesperson said he would make a statement soon.

A Nikola spokeswoman stated that Milton resigned on September 20 and “has not been involved in the company’s operations or communications since then. Today’s government actions are directed at Mr. Milton personally, not at the company. In Throughout the investigation process, Nikolai has been cooperating with the government.”

The company said it still plans to deliver the Nikola Tre battery electric truck later this year.

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