Nikola founder sentenced to 4 years in prison for defrauding investors – Kommersant
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The District Court for the Southern District of New York sentenced the founder of Nikola Corp. Trevor Milton to four years in prison, reports Reuters. Mr Milton was found guilty of defrauding investors in October 2022. The sentence came into force, but the judge allowed the businessman to remain free while the court considered his appeal.
The Department of Justice and the US Securities and Exchange Commission began an investigation into Nikola Motors in the fall of 2020, checking a complaint from Hindenburg Research. She claimed that Nikola management misled investors by citing “dozens” of false claims about technological developments in its reports in order to attract cooperation from other automakers. Shortly after the investigation began, Mr. Milton left the company.
The investigation found that Milton misled investors by claiming that Nikola built the pickup truck “from scratch” and that the company developed its own batteries, even though he knew it was buying them. His statements about the creation of a successful Nikola One model, while it was not yet ready, were also recognized as false.
Prosecutors had sought an 11-year sentence for Mr. Milton, citing punishment for Elizabeth Holmes, founder of Theranos. However, the court found that Holmes deserved more punishment, since her startup worked in the healthcare sector and her lies could have a negative impact on people’s health.
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