Nikola Corp. Founder Trevor Milton Sentenced to Four Years in Prison for Fraud

Milton exaggerated claims about his company’s production of zero-emission trucks, leading to significant investor losses.

Trevor Milton, the founder of Nikola Corp., has been sentenced to four years in prison for exaggerating claims about his company’s production of zero-emission 18-wheel trucks, causing investors to lose hundreds of thousands of dollars.
Milton was convicted of fraud charges after prosecutors portrayed him as a con man who falsely claimed to have built a revolutionary truck that was actually a General Motors Corp. product with Nikola’s logo stamped onto it.
The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola, which continues to operate from an Arizona headquarters, didn’t admit any wrongdoing.
Milton first appeared on the Forbes Billionaires list in April 2020 with a net worth of $1.1 billion, six years after cofounding Nikola, which set out to make electric and hydrogen-powered semi trucks; his fortune peaked at $8.7 billion in June 2020 as Nikola shares rose after going public through a deal with a special purpose acquisition company (SPAC).
Milton is far from the first billionaire or ex-billionaire to face jail time. His sentencing comes weeks after former crypto billionaire Sam Bankman-Fried was convicted of fraud and conspiracy.