Electric truck manufacturer Nicholas (NKLA) As a founder, the stock price fell by more than 10% on Thursday morning Indicted by a grand jury on three counts of criminal fraud.
The indictment alleges that Milton resigned as CEO of the company in September 2020 and was sued for allegedly lying about “almost all aspects of the business.” NBC Finance Channel.
The news media stated that he was charged with two counts of securities fraud and wire fraud for lying about Nikola’s products, technology and future sales prospects.
According to reports, the prosecution continues Business insider, “Milton’s plan is aimed at individual, non-professional investors-so-called retail investors-making false and misleading statements directly to the investing public through social media, television, print and podcast interviews.”
The Department of Justice investigation was conducted after Hindenberg Research released a short seller report in September claiming that Milton made false statements to investors to promote Nikola in the electric car market.
The report allegedly hinted that Milton rolled one of the cars down the hill to make it look like it was driven in a promotional video, Business Insider said. The report also called Milton a “complex fraud.”
Nikolai denied the statements in the report, calling them “False and slanderous.”
Soon after the report was released, Milton resigned as CEO and chairman of the company.
As part of the indictment, Milton may have to confiscate all property “that can be traced back to the execution of the above-mentioned crimes.” Business insiders say this may include his initiation of an initial public offering through the merger of SPACs in Nikolai in June 2020. Earned more than $1 billion at the time, according to the grand jury.
Milton held approximately $8.5 billion in Nicholas stock at the time of the company’s highest value and was the largest shareholder of the electric truck manufacturer at the time.
According to CNBC, prosecutors stated that Milton “has an incentive to participate in fraudulent schemes to enrich himself and enhance his status as an entrepreneur”.
Since Milton left the company, Nikola has given up plans to launch the company. Badger electric pickup truck Rear General Motors Abandoned the deal to produce the car in November 2020.
Milton was also charged Sexually assaulted two women, Who was under 15 years old at the time, occurred in two different incidents. One of them was allegedly his cousin Aubrey Ferrin Smith (Aubrey Ferrin Smith), and the other claimed to be an office assistant for a security company he ran in Utah.
Nicholas Biase, a spokesperson for the US Attorney’s Office, told the CNCB that Milton has surrendered to the authorities and is expected to appear in New York later today.
In a statement to CNBC, Nicola emphasized that the indictment was against Milton and not the company, and stated that it “cooperated with the government throughout the investigation.”
As of 11:03 AM Eastern Time on Thursday, Nikola’s share price was $13.14, down $1.05 or 7.43%.
Photo: Twitter
