The controversial case of the Nikola company, particularly with Trevor Milton's lawsuit, has now reached its conclusion, with the disgraced founder and CEO now sentenced to four years in prison. The recent verdict to the former executive was handed down against him, but it is not what the prosecutor wanted for Milton, initially asking for a heavier sentence for him.
Its case centered on securities fraud and wire fraud in 2022, and it was one of the key roadblocks for Nikola's supposed growth in the industry.
Nikola's Trevor Milton Sentenced to Four Years in Prison
(Photo : Trevor Milton via X)
Bloomberg reported that Trevor Milton, Nikola's former CEO, has been sentenced to face four years in prison, focusing on his case, which concluded in 2022. Milton was previously found to be guilty of one case of securities fraud and two counts of wire fraud, centered on his time as the chief executive of Nikola before stepping off in 2020.
Throughout the hearing, it was reported that Milton denied all the charges against him, and he asked to be only charged with probation.
Milton regarded that his "misstatements" were because of his "deeply held optimism" for the company and its growth, Yahoo said. Additionally, he claimed that he is not a "very seasoned CEO."
Prosecutors Want More Prison Time for Milton
Milton is convicted of his crimes and now faces four years of prison time, following the guilty verdict against his name.
However, this was not something that the prosecution was entirely happy with, as they requested more prison time for the former CEO, initially asking that he serve as much as 11 years in a correctional facility.
To add to this, the prosecutors also asked that Milton pay a $5 million fine, with his lies to investors claimed to be worth more than $660 million.
Nikola and Trevor Milton's Controversy
The EV startup known as Nikola, alongside its founder and CEO Trevor Milton, rose to fame in 2020 with its significantly hot start, getting a $4.1 million loan under the Small Business Administration's PPP. More importantly, this was because the company filed a $2 billion lawsuit against Tesla, centering on patent infringements by the company in 2018 with the Semi.
However, the 2014 startup did not enjoy its ramping popularity in the industry as Milton faced massive controversy, with various complaints against him. This led to the executive stepping off from his post as its chief, with various issues surfacing including fraud, sexual assault allegations, and more, leading to the largest lawsuit the former CEO has faced.
Back in 2022, the criminal charges against Milton began, and it took a long year for the former executive to face, and earlier this October, he was given a guilty verdict by the jury. Instead of the supposed 20 years of prison time for the fraud counts, Trevor Milton's sentence was reduced to only four years, with the prosecution still wanting more to avoid further scrutinies happening.
Related Article: Nikola's Former Exec Trevor Milton Faces 'Guilty' Charges of Fraud
