Trevor Milton, Founder of Nikola, Receives Presidential Pardon from Donald Trump
The former CEO's conviction for fraud raises questions regarding investor protection and corporate ethics.
Trevor Milton, the founder of Nikola Corporation, has been granted a presidential pardon by former U.S. President Donald Trump.
Milton was convicted of fraud after a jury determined that he misled investors regarding the capabilities and technological advancements of Nikola's products.
The conviction followed a jury verdict in 2022, which highlighted misleading statements made by Milton concerning various aspects of the company's operations.
Among the notable allegations against Milton was a 2017 promotional video that depicted a truck rolling down a hill, implying that it was fully operational, when in fact it was not.
Milton faced a potential four-year prison sentence, although he had not yet begun serving time as he was in the process of appealing the jury’s decision.
During his tenure at Nikola, Milton reportedly sold company shares valued at around $400 million.
Following the fraud allegations, prosecutors sought a judgment mandating Milton to pay $661 million to investors who were allegedly misled by his statements.
His political contributions exceeded $2 million, mostly directed toward the Republican Party, reflecting his connections with prominent political figures, including a sibling of a U.S. Attorney General.
Milton resigned from his CEO position at Nikola after initial claims of fraud surfaced.
Nikola Corporation, which aimed to innovate the transportation sector with its hydrogen fuel cell and battery-operated trucks, has faced significant challenges since the scandal broke.
In recent months, the company filed for Chapter 11 bankruptcy protection, signaling plans to sell its assets and cease operations.
Among its creditors is Bosch, a German automotive supplier to which Nikola owes $13.3 million.
Founded approximately ten years ago, Nikola became publicly traded in 2020 and reached a valuation of about $29 billion at the peak of the electric vehicle market's excitement.
However, the company struggled to deliver sufficient quantities of its trucks, leading to difficulties in establishing a viable business model, despite managing to sell a limited number of vehicles in recent months.
Milton was convicted of fraud after a jury determined that he misled investors regarding the capabilities and technological advancements of Nikola's products.
The conviction followed a jury verdict in 2022, which highlighted misleading statements made by Milton concerning various aspects of the company's operations.
Among the notable allegations against Milton was a 2017 promotional video that depicted a truck rolling down a hill, implying that it was fully operational, when in fact it was not.
Milton faced a potential four-year prison sentence, although he had not yet begun serving time as he was in the process of appealing the jury’s decision.
During his tenure at Nikola, Milton reportedly sold company shares valued at around $400 million.
Following the fraud allegations, prosecutors sought a judgment mandating Milton to pay $661 million to investors who were allegedly misled by his statements.
His political contributions exceeded $2 million, mostly directed toward the Republican Party, reflecting his connections with prominent political figures, including a sibling of a U.S. Attorney General.
Milton resigned from his CEO position at Nikola after initial claims of fraud surfaced.
Nikola Corporation, which aimed to innovate the transportation sector with its hydrogen fuel cell and battery-operated trucks, has faced significant challenges since the scandal broke.
In recent months, the company filed for Chapter 11 bankruptcy protection, signaling plans to sell its assets and cease operations.
Among its creditors is Bosch, a German automotive supplier to which Nikola owes $13.3 million.
Founded approximately ten years ago, Nikola became publicly traded in 2020 and reached a valuation of about $29 billion at the peak of the electric vehicle market's excitement.
However, the company struggled to deliver sufficient quantities of its trucks, leading to difficulties in establishing a viable business model, despite managing to sell a limited number of vehicles in recent months.
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