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NEW YORK (Reuters) – A prosecutor on Thursday urged jurors to convict Nikola Corp founder Trevor Milton of fraud, calling him a “con man” who lied about the low-emission vehicle company to defraud ordinary investors.
Federal prosecutors during closing arguments in New York said Milton deceived investors about the electric- and hydrogen-powered truck maker’s technology starting in November 2019. Milton left the company in September 2020 after a report by short seller Hindenburg Research called the company a “fraud.”
Assistant U.S. Attorney Jordan Estes recapped evidence from the trial that began last month, including testimony from individual retail investors who prosecutors have said Milton targeted in podcasts, interviews and social media.
“Trevor Milton is a con man,” Estes told the jury. “His lies may have been on social media, but his was an old-fashioned fraud.”
Milton’s attorneys have said he believed in his vision for the company and that prosecutors distorted his statements about Nikola’s plans to shake up the automotive industry.
Prosecutors said Milton made false statements about Nikola’s progress on developing its technology as the company joined the mounting number of tech and electric vehicle companies going public through special purpose acquisition vehicles, or SPACs.
They said Milton’s improper statements included that Nikola built an electric- and hydrogen-powered “Badger” pickup from the “ground up,” developed batteries in-house that he knew it was purchasing elsewhere and had early success in creating a “Nikola One” semi-truck he knew did not work.
Attorneys for Milton have said Nikola’s filings with the U.S. Securities and Exchange Commission made clear it was an early-stage company and that investments in it were highly speculative.
The case is U.S. v. Milton, U.S. District Court, Southern District of New York, No. 1:21-cr-00478.
