Electric cars Electric vehicle company Nikola founder accused of fraud, attracted investors with false allegations

According to the lawsuit, Trevor Milton, the company’s former chairman of the board, lied to investors to boost demand for the company’s shares.

The United States a large jury has sued the founder of electric vehicle manufacturer Nikola Trevor Miltonia against. According to the lawsuit, Milton has lied to investors from almost every aspect of the business to boost demand for the company’s shares.

The news agency AFP and CNBC.

Milton, who previously served as Chairman of Nikola’s Board of Directors, resigned in September 2020. The frauds mentioned in the indictment took place between November 2019 and September 2020.

Prosecution According to Milton, in his capacity as chairman of the board, he had argued, inter alia, that Nikola had developed a prototype of a fully functional semi – trailer combination, even though he knew it was inoperable.

As a result of Milton’s false statements, the company’s shareholders will suffer losses of up to hundreds of thousands of euros.

In addition to the jury’s indictment, the U.S. Securities and Exchange Commission (SEC) is demanding fines from Milton and a permanent ban on serving as a corporate director.

Milton went public in September last year when Nikola announced his partnership with General Motors.

However, the partnership was canceled shortly after the agreement was announced when Hindenburg Research released a report that Nikola had released a staged video of his electric vehicle technology. Milton left the company soon after the report was released.

Read more: GM canceled the purchase of a stake in hydrogen and electric truck manufacturer Nikola, which was caught lying

According to Nikola, the charge filed on Thursday concerns only Milton and not the company.

Nevertheless, the company’s share started to decline. According to the statement, the company has also cooperated with the authorities to investigate the case.

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