U.S. prosecutors charge Trevor Milton, founder of electric carmaker Nikola, with three counts of fraud via /r/wallstreetbets #stocks #wallstreetbets #investing


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

Here is the important bits:

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

Prosecutors charged the billionaire, who resigned as chairman in September, with two counts of securities fraud, including 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,” prosecutors said in the 49-page indictment. 

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

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

https://www.cnbc.com/2021/07/29/us-prosecutors-charge-trevor-milton-founder-of-electric-carmaker-nikola-with-three-counts-of-fraud.html

Submitted July 29, 2021 at 03:20PM by GushingGranny1
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