Nikola, the founder sentenced to 4 years in jail | EUROtoday

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Trevor Milton discovered responsible of fraud

by Finance Editorial Staff

Trevor Milton, CEO of Nikola

Trevor Milton, founder of electrical truck maker Nikola, was sentenced to 4 years in jail for fraud. Federal prosecutors in New York had requested for an 11-year sentence. Judge Edgardo Ramos’ sentence comes greater than a yr after the jury’s verdict, which discovered him responsible of mendacity to shareholders about many particulars of Nikola’s product and know-how improvement. Milton resigned from Nikola in 2021.

Milton turned a billionaire with the itemizing of Nikola through a Spac in June 2020. The firm was thought of among the many most promising startups within the sector, valued at over $130 billion at its peak, earlier than the fraud was reported by the corporate Hindenburg Research .

Nikola in 2021 agreed to pay $125 million to resolve civil prices introduced by the U.S. Securities and Exchange Commission.
The firm’s shares are actually buying and selling at lower than $1, down from a peak above $60 seen in June 2020.