Nikola’s founder Trevor Milton sentenced to 4 years imprisonment for defrauding investors

Trevor Milton, the founder and former CEO of electric truck startup Nikola, received a four-year prison sentence on Monday for securities fraud. Judge Edgardo Ramos in the US District Court in Manhattan delivered the sentence, marking the end of a protracted saga that initially saw Nikola's stock surge by 83 per cent, only to plummet later due to allegations of fraud and cancelled contracts.

The sentencing, following four delays, allowed Milton to remain free under a $100 million bond. The court has imposed a 48-month sentence on each count, served concurrently, along with a $1 million fine. 

During the sentencing hearing, Milton emotionally pleaded for leniency, asserting that he stepped down from Nikola, not due to fraud allegations but to support his ailing wife. He claimed that his wife suffered from a life-threatening sickness due to medical malpractice, prompting him to prioritise family over money or power.

Milton, convicted in October 2022 of securities and wire fraud, was found guilty of misleading investors about Nikola's electric truck development to inflate the company's stock price. Defence argued that he sought admiration like Elon Musk and did not intend to defraud investors, while prosecutors maintained that he repeatedly lied and targeted retail investors.

The case accused Milton of deceiving investors since 2019 by making false statements, including claims that Nikola built a truck from scratch and developed batteries that were purchased elsewhere. The infamous Nikola marketing video, depicting a truck seemingly driving under its own power, was revealed to be rolling down a hill, sparking investigations and Milton's resignation.