Nicholas founder Trevor Milton has been charged with fraud charges

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, founder and former CEO of an electric vehicle company was charged by the federal grand jury with two counts of securities fraud and one count of wire fraud. Milton is accused of lying about “almost all aspects of the business” in order to increase Nikola’s shares.

The claims that Milton seemed to make Nicholas far more advanced than he actually was in terms of owning fully functional EVs. That he had a hand in making the video that made him look like Nicholas One the prototype could move on its own when it was actually descending a slope.

Milton falsely claimed that the company had pre-order reserves worth “billions and billions and billions and billions” of dollars and that the company produced its own hydrogen at four times lower prices, according to the indictment. He is also charged with falsely claiming that Nikola developed “game-changing” battery technology, that he developed and manufactured several key components for his in-house EVs, and that the total cost of ownership of Nikola’s trucks was 20-30 percent lower. diesel vehicles. “

Prosecutors say Milton resigned in September , targeted and seduced amateur investors (or “retail investors”). According to the indictment, some of those investors lost hundreds of thousands of dollars.

At Nicole’s peak, Milton held stocks worth about $ 8.5 billion, as well notes. The grand jury argues that Milton should hand over the property “traceable to the commission of the said acts.” That could include over a billion dollars that Milton earned when the company went public in June 2020.

The SEC also filed an indictment against Milton on Thursday for fraud in civil securities. The agency asked the district court to force Milton to give up “unauthorized profits” and pay a fine. He also calls for a lifetime ban on Milton being an employee of a company that issues securities.

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