Nikola (NKLA) Founder Trevor Milton Indicted for Fraud

Nikola (NASDAQ: NKLA) founder Trevor Milton has been indicted on charges of making false and misleading statements to investors, the U.S. Department of Justice announced.

According to the indictment, from November 2019 to September 2020, Milton defrauded investors into buying Nikola shares through statements about the company's product and technology development.

According to the indictment against Milton, the founder utilized his presence on social media, as well as podcasts and appearances on television to “flood the market with false and misleading information”.

Milton repeatedly made statements about the core aspects of the company’s products and technological advancements, as well as commercial prospects, it was added.

Milton falsely claimed, using a misleading video, that it’s first semi-truck prototype could be driven under its own power. He claimed that the company was producing hydrogen at costs four times less than market rates. Milton also claimed that the company had obtained “billions and billions and billions and billions” of dollars in committed truck orders.

The U.S. attorney will hold a press conference at 11am today to discuss the charges.

By Michael Elkins | [email protected]

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