Trevor Milton, the founder and former CEO of electric truck startup Nikola, has been sentenced to four years in prison for securities fraud. The sentencing, delivered by Judge Edgardo Ramos in the U.S. District Court in Manhattan, marks the culmination of a tumultuous journey that saw Nikola’s stock soar before crashing amid accusations of fraud and canceled contracts.
Milton, 41, sobbed during the sentencing hearing as he pleaded for leniency. He claimed he stepped down from the CEO post not due to fraud allegations but to support his wife, who suffered from a life-threatening sickness. Milton’s emotional statement followed his conviction in October 2022 on one count of securities fraud and two counts of wire fraud, stemming from his misleading investors about Nikola’s electric truck development to inflate the company’s stock price.
Judge Ramos imposed a sentence of 48 months on each count, served concurrently, and a $1 million fine. Milton, expected to appeal the sentence, asserted that he chose his wife over money or power.
During the trial, defense attorneys argued that Milton’s actions were driven by a desire for admiration akin to Elon Musk, claiming he did not intend to defraud investors. Prosecutors countered, accusing Milton of repeated lies targeting retail investors and recommended an 11-year sentence. Milton faced a maximum of 60 years in prison, along with the government seeking a $5 million fine, forfeiture of a Utah ranch, and undetermined restitution to investors.
The case exposed Milton’s deception, including false claims about Nikola’s truck development and misrepresented battery ownership. The infamous marketing video showing a truck seemingly driving on its own power, later revealed to be rolling downhill, triggered investigations and a Hindenburg Research report, labeling Nikola a fraud. Milton stepped down in September 2020, and Nikola paid a $125 million SEC settlement.
In October, an arbitration panel ordered Milton to pay Nikola $165 million, seeking reimbursement for the SEC settlement. Milton, who pleaded not guilty, insisted misstatements were fueled by optimism, with his lawyers advocating for probation last month, citing his ailing wife.
Trevor Milton’s sentencing adds to a list of high-profile cases involving tech founders, underscoring the legal consequences of fraudulent actions in the corporate world.
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