The founder of an electric truck start-up that was popular in the US has been sentenced to four years in prison.
Trevor Milton, who led Nikola Corporation, was convicted of fraud last year after a jury found he had lied persistently about the company.
His claims helped pump up the firm’s share price, which soared to astonishing heights during the pandemic before crashing due to fraud claims.
His claims helped pump up the firm’s share price, which soared to astonishing heights during the pandemic before crashing due to fraud claims.
“Today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price,” said Damian Williams, US Attorney for the Southern District of New York.
Milton, who did not have degree, founded Nikola around 2015 and pitched it as a potential rival to Tesla.
It claimed to be designing trucks powered by electricity and hydrogen. In June 2020, Nikola became a public company after it merged with another firm.
Within weeks, it was valued at more than $20bn – despite never having delivered a single vehicle – and was soon announcing partnerships with the likes of General Motors.
But the hype collapsed as questions grew about the truth of Milton’s statements. A well-publicised report from short-seller Hindenburg Research contributed to the growing concerns.
The founder of an electric truck start-up that was popular in the US has been sentenced to four years in prison.
His claims helped pump up the firm’s share price, which soared to astonishing heights during the pandemic before crashing due to fraud claims.
Trevor Milton, who led Nikola Corporation, was convicted of fraud last year after a jury found he had lied persistently about the company.
“Today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price,” said Damian Williams, US Attorney for the Southern District of New York.
His claims helped pump up the firm’s share price, which soared to astonishing heights during the pandemic before crashing due to fraud claims.
His claims helped pump up the firm’s share price, which soared to astonishing heights during the pandemic before crashing due to fraud claims.
“Today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price,” said Damian Williams, US Attorney for the Southern District of New York.
Milton, who did not have degree, founded Nikola around 2015 and pitched it as a potential rival to Tesla.
It claimed to be designing trucks powered by electricity and hydrogen. In June 2020, Nikola became a public company after it merged with another firm.
Within weeks, it was valued at more than $20bn – despite never having delivered a single vehicle – and was soon announcing partnerships with the likes of General Motors.
But the hype collapsed as questions grew about the truth of Milton’s statements. A well-publicised report from short-seller Hindenburg Research contributed to the growing concerns.
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