Trevor Milton, the founder and former CEO of electric truck startup Nikola, has been sentenced to four years in prison in a fraud case, reports The Verge.
The businessman was found guilty of misleading investors about the company’s technology. In view of this, he must also pay a fine of $1 million.
According to the federal prosecutor, the company’s founder lied about Nikola’s capabilities. In particular, this applies to the allegations that the manufacturer built the Nikola One semi-tractor from scratch.
The former CEO was also accused of having edited a video of the vehicle. It showed Nikola One allegedly driving on its own, when in fact it was rolling down a hill.
As you know, Nikola was founded in 2015, and in 2020, the automaker General Motors announced its intention to acquire an 11 percent stake and cooperate with the company.
But soon, Hindenburg Research released a report accusing Nikola of fraud. This document set off a chain reaction that led to Trevor Milton’s resignation and subsequently to his arrest. And GM announced that it would no longer be financially involved in the company.
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