Nikola's Former CEO Trevor Milton Allegedly Deceives Retail Investors Through Fraudulent Scheme, Even Before They Began Making EVs
Trevor Milton, the founder and former CEO of Nikola Corporation, an American EV manufacturer, is currently linked to fraudulent acts. Prosecutors accused him of deceiving various retail investors, even before his company could release its first product.
According to Tech Crunch's latest report, the fast-talking showman is now facing three counts of fraud charges. He is believed to have engaged in a recent fraudulent activity for his own personal benefit, which is to fool various investors and other possible partners.
The U.S. Attorney's Office in Manhattan announced this detail on Thursday, July 29, after the department released the federal indictment against the former CEO.
Nikola's Founder Is a Fraud?
The Verge reported that the charges against the billionaire claim that he made a series of false statements. His words stated that the electric vehicle company Nikola is closer to releasing a functional EV, although the manufacturer is allegedly not working on one.
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Because of Milton's claims, he and his company were able to generate more than $500 million in revenue from their victims. However, some people might think that this is an advanced investment, the U.S.
Attorney's Office in Manhattan reiterated that what Trevor did is illegal since they are false claims.
"Milton sold a version of Nikola not as it was - an early stage company with a novel idea to commercialize yet-to-be proven products and technology - but rather as a trail-blazing company that had already achieved many groundbreaking and game-changing milestones," explained the department.
One of the fraudulent acts that the founder was involved with is the fake or staged video of the Nikola One semi-truck prototype. In the video, the electric mobile was seen using its own horsepower to move. However, some experts claimed that the vehicle is just moving downhill, which is comparable to a toy rolling down on a slope.
Other Details of Fake Nikola Promotional Video
According to ABC News' latest report, authorities noticed in the fake promotional video of the giant EV creator are the tapes used for the electric truck's doors.
They claimed that Milton used tapes to prevent the car's doors from falling off. Aside from these, they added that the batteries were also removed from the vehicle during the shoot.
"Among the retail investors who ultimately invested in Nikola were investors who had no prior experience in the stock market and had begun trading during the COVID-19 pandemic to replace or supplement lost income or to occupy their time while in lockdown," added the prosecutors.