U.S. prosecutors charged Trevor Milton, the founder of electric carmaker Nikola, with three counts of fraud

July 30, 2021: -On Thursday, Trevor Milton, the founder of EV start-up Nikola, was indicted on three counts of criminal fraud by the U.S. Attorney’s Office in Manhattan for lying allegedly about “nearly all aspects of the business,” a grand jury indictment unsealed said.

Prosecutors charged the billionaire, the one who resigned as chairman in September, with two counts of securities fraud, which include making false statements about the company and wire fraud.

“Milton’s scheme targeted individual, non-professional investors, so-called retail investors by making false and misleading statements directly to the investing public through social media, and television, print, and podcast interviews,” said prosecutors in the 49-page indictment.

The company’s largest shareholder, Milton, was held $8.5 billion in Nikola stock at the height of the company’s value.

Shares of Nikola were down by over 9% in premarket trading to less than $13 a share.

The grand jury said Milton should forfeit all property “traceable to the commission of said offenses,” which would include the above $1 billion he earned when Nikola went public in June 2020.

Prosecutors said Milton “was motivated to engage in the fraudulent scheme to enrich himself and elevate his stature as an entrepreneur.”

Nikola said in an emailed statement that it’s “cooperated with the government throughout its inquiry.” The company emphasized that the allegations are against Milton and not the company.

“We are committed to our announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks this year from the company’s manufacturing facilities,” the company said.

Many of the allegations regarding wrong and misleading statements were first uncovered by short-seller Hindenburg Research in September.