Nikola founder convicted of fraud

Brady Knox

October 14, 10:34 PM Oct 14, 10:34 PM

The founder of auto company Nikola was convicted by a U.S. jury of fraud about allegations that he had lied to traders about the firm's know-how.

Trevor Milton, 41, was labeled a "con gentleman" by prosecutors who purposefully misled traders as to the character and abilities of the electric powered and hydrogen-powered truck firm, Reuters reported. They claim that he applied social media, tv, print, and podcasts to make phony statements about his firm's technologies, lauding their capabilities whilst being aware of they failed to essentially get the job done. The jury convicted Milton of one rely of securities fraud and two counts of wire fraud but acquitted him on one depend of protection fraud.

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“Trevor Milton is a con male,” Jordan Estes, assistant U.S. lawyer, mentioned, according to the New York Moments. “He lied to traders to get their funds, basic and straightforward.”

Milton's defense likened him to an overexcited guardian bragging about a kid, the outlet claimed, acknowledging that he at times spoke in the current tense while addressing issues in the future.

Milton is allowed to continue being absolutely free on a $100 million bond until eventually his sentencing in January. His most significant conviction, one particular for wire fraud, carries a highest sentence of 20 several years in jail.

In a statement, Nikola reported that it was "happy to near this chapter" and will now go on to analysis and offering to shareholders.

Previous yr, the company agreed to settle with the U.S. Securities and Trade Commission for $125 million more than comparable allegations.