Founder of Nikola, Trevor Milton, has been sentenced to a four-year prison term following last year’s jury verdict, which found him guilty of deceiving investors about the company’s technology.
According to a Reuters report, U.S. District Judge Edgar Ramos announced the sentence in a federal court in Manhattan on Monday, after federal prosecutors revealed that Milton had misled investors by falsely claiming that Nikola had independently constructed a pickup and developed its own batteries, despite purchasing them.
He also falsely asserted early success in creating a non-functional “Nikola One” semi-truck. Judge Ramos, while acknowledging the difficulty of the situation for Milton and his family, expressed agreement with the jury’s decision, stating, “As difficult as it may be for you or your family to hear, I believe the jury got it right.”
Despite the conviction, Milton was allowed to remain free on bail while he appeals the decision. Last week, prosecutors had recommended an approximately 11-year prison sentence, comparable to the one handed to Theranos founder Elizabeth Holmes, who was convicted of defrauding investors in her blood testing startup.
In October 2022, Milton was convicted on one count of securities fraud and two counts of wire fraud but was acquitted on an additional securities fraud charge. Additionally, in 2021, Nikola agreed to a $125 million settlement to resolve civil charges brought by the U.S. Securities and Exchange Commission. The company’s shares have plummeted, now trading at less than $1, down from a peak of over $60 in June 2020.