Summary:
Trevor Milton founded Nikola in 2014, an EV startup that went public in 2020.
Nikola faced investigations from the SEC and DOJ, leading to bankruptcy in 2022.
Milton was convicted of fraud in 2024, receiving a four-year prison sentence.
He was pardoned by Donald Trump, who claimed Milton's only mistake was his support for him.
The pardon could nullify hundreds of millions in restitution for defrauded investors.
Who is Trevor Milton?
Trevor Milton is the founder of Nikola, a startup launched in 2014 that designs and manufactures electric vehicles (EVs), including semi-trucks and pickup trucks. The company made headlines when it went public on Nasdaq in June 2020, but soon after, it became embroiled in numerous controversies.
Controversies Emerge
Following its IPO, Nikola faced legal scrutiny as both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) launched investigations into allegations of securities fraud. In February, the company filed for Chapter 11 bankruptcy.
A significant lawsuit was initiated by Hindenburg Research, which accused Nikola of being an "intricate fraud" and severely impacted the company’s stock prices.
Milton's Conviction
In 2024, Milton was convicted of fraud for exaggerating Nikola's technology capabilities and misleading investors. Key allegations included:
- A promotional video that falsely depicted a truck driving on a highway was actually of a non-functional vehicle rolling down a hill.
- Claims that the company developed its own truck, which was actually a modified General Motors vehicle.
- Testimonies from Nikola's CEO indicated that Milton often exaggerated the company's achievements.
Milton received a four-year prison sentence. US Attorney Damian Williams emphasized that Milton's actions serve as a warning that misleading investors is a serious offense.
Trump Connection
Recently, Donald Trump granted a pardon to Milton, who expressed gratitude for the decision, stating it was a matter of innocence. Notably, Milton had contributed $1.8 million to Trump’s re-election campaign shortly before the pardon. Trump defended Milton, suggesting his only fault was supporting him.
This pardon could potentially relieve Milton from hundreds of millions in restitution that prosecutors were pursuing for defrauded investors.
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