Nikola Founder Trevor Milton Receives Prison Sentence Following Fraud Conviction

Trevor Milton, the founder of electric truck start-up Nikola Corporation, has been sentenced to four years in prison for fraud. The 41-year-old was found guilty of repeatedly lying about the company, which led to a surge in its share price before it eventually crashed due to fraud accusations. Despite maintaining that he had good intentions, Milton wept during his sentencing hearing. Damian Williams, the US Attorney for the Southern District of New York, stated that the sentence should serve as a warning to other start-up founders and corporate executives that fraud will not be tolerated. Milton, who lacked a college degree, established Nikola in 2015 as a potential competitor to Tesla, claiming to develop electric and hydrogen-powered trucks. The company went public in June 2020, quickly reaching a valuation of over $20 billion, despite never delivering a single vehicle. However, doubts about Milton's claims led to the company's downfall, with a report from Hindenburg Research adding to the concerns. Federal prosecutors found that Milton had made false claims about nearly all aspects of Nikola's business, specifically targeting non-professional investors. Judge Edgardo Ramos stated that Milton had repeatedly made false statements about the company through various media outlets. As part of his sentencing, Milton was also ordered to pay a $1 million fine, forfeit property, and serve three years of supervised release. This case puts Milton alongside other American entrepreneurs such as Elizabeth Holmes, the founder of Theranos, who is currently serving time in prison, while Sam Bankman-Fried, the CEO of FTX, awaits sentencing.