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Founder of "Nikola" electric truck startup indicted for fraud
Posted: Thu Jul 29, 2021 4:08 pm
by funkervogt
Trevor Milton, the fast-talking showman founder of Nikola and the electric truck startup’s former CEO and executive chairman, has been charged with three counts of fraud.
Milton “engaged in a fraudulent scheme to deceive retail investors” for his own personal benefit, according to the federal indictment unsealed by U.S. Attorney’s Office in Manhattan on Thursday. Milton was charged with two counts of securities fraud and wire fraud by a federal grand jury.
Specifically, prosecutors detailed in the complaint how Milton used social media and frequent appearances on television in a PR blitz that flooded “the market with false and misleading information about Nikola” before the company even produced a product.
https://techcrunch.com/2021/07/29/nikol ... -of-fraud/
Re: Founder of "Nikola" electric truck startup indicted for fraud
Posted: Thu Jul 29, 2021 4:18 pm
by raklian
Yeah, it was a long time coming.
Re: Founder of "Nikola" electric truck startup indicted for fraud
Posted: Thu Jul 29, 2021 4:54 pm
by wjfox
Re: Founder of "Nikola" electric truck startup indicted for fraud
Posted: Thu Jul 29, 2021 5:15 pm
by funkervogt
I recommend updating that blog post, perhaps with an analysis of what went wrong.
Re: Founder of "Nikola" electric truck startup indicted for fraud
Posted: Fri Jul 30, 2021 2:54 pm
by wjfox
Nikola electric-truck prototypes were powered by hidden wall sockets, towed into position and rolled down hills, prosecutors say
Last Updated: July 29, 2021 at 8:54 p.m. ET
[...] Prosecutors said that, in fact, the prototypes that had been unveiled didn’t function and were Frankenstein monsters cobbled together from parts from other vehicles. At public events, the vehicles were allegedly towed into position and were powered by plugs leading from hidden wall sockets.
In one instance, in which the vehicle was filmed for a promotional film, tape was used to keep the doors of a truck prototype from opening, prosecutors said. To make it appear the truck was driving, it was towed to the top of a hill and then rolled down to the bottom, according to the indictment.
https://www.marketwatch.com/story/nikol ... =home-page
