Nikola founder Trevor Milton sentenced to 4 years in jail in EV truck fraud case

Trevor Milton, the founder and former CEO of electrical truck firm Nikola, was sentenced to 4 years in jail after a jury discovered him responsible of deceptive traders concerning the firm’s know-how. Milton was additionally ordered to pay a $1 million fantastic.

Federal prosecutor stated Milton had lied about Nikola’s capabilities, together with an assertion that it had constructed its personal electrical truck, the Nikola One, from the “floor up.” Additionally they accused him of staging a video that purportedly confirmed its Nikola One semi driving beneath its personal energy when it was truly rolling down a hill.

Throughout the sentencing listening to, Milton made a number of weird statements. He claimed that his resignation from Nikola was not a results of the fraud allegations however as a result of his spouse had an sickness. He additionally stated he was a quarter Cherokee and was emotional recounting “ethnic cleaning” towards the tribe.

Based in 2015, Nikola staked out a novel place within the buzzy EV area by claiming it could make zero-emission large rigs utilizing hydrogen gas cell know-how. The corporate scored an enormous win in 2020 when Basic Motors introduced plans to purchase an 11 p.c fairness stake. The automaker additionally stated it could assist Nikola engineer and manufacture its battery-electric and hydrogen gas cell autos, together with the Badger pickup truck.

However lower than per week later, short-selling agency Hindenburg Analysis revealed a bombshell report accusing Nikola of fraud, together with the video displaying the truck rolling down a hill. The report set off a series response that resulted in Milton’s stepping down as board chair and CEO and his eventual arrest.

Along with staging the video, Milton was accused of falsely claiming to supply his personal hydrogen fuels at below-market charges and acquiring “billions and billions and billions and billions” of {dollars}’ price of dedicated truck orders.