https://www.cnbc.com/2023/12/18/nikola-founder-trevor-milton-sentencing-fraud-charges.html Skip Navigation logo * watchlive logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim's Columns * Education * Subscribe * Sign In PRO * Pro News * Pro Live * Stock Screener * Market Forecast * Options Investing * Subscribe * Sign In Menu * Make It * select + ALL SELECT + Credit Cards + Loans + Banking + Mortgages + Insurance + Credit Monitoring + Personal Finance + Small Business + Taxes + Help for Low Credit Scores + Investing + SELECT + All Credit Cards + Find the Credit Card for You + Best Credit Cards + Best Rewards Credit Cards + Best Travel Credit Cards + Best 0% APR Credit Cards + Best Balance Transfer Credit Cards + Best Cash Back Credit Cards + Best Credit Card Welcome Bonuses + Best Credit Cards to Build Credit + SELECT + All Loans + Find the Best Personal Loan for You + Best Personal Loans + Best Debt Consolidation Loans + Best Loans to Refinance Credit Card Debt + Best Loans with Fast Funding + Best Small Personal Loans + Best Large Personal Loans + Best Personal Loans to Apply Online + Best Student Loan Refinance + SELECT + All Banking + Find the Savings Account for You + Best High Yield Savings Accounts + Best Big Bank Savings Accounts + Best Big Bank Checking Accounts + Best No Fee Checking Accounts + No Overdraft Fee Checking Accounts + Best Checking Account Bonuses + Best Money Market Accounts + Best CDs + Best Credit Unions + SELECT + All Mortgages + Best Mortgages + Best Mortgages for Small Down Payment + Best Mortgages for No Down Payment + Best Mortgages with No Origination Fee + Best Mortgages for Average Credit Score + Adjustable Rate Mortgages + Affording a Mortgage + SELECT + All Insurance + Best Life Insurance + Best Homeowners Insurance + Best Renters Insurance + Best Car Insurance + Travel Insurance + SELECT + All Credit Monitoring + Best Credit Monitoring Services + Best Identity Theft Protection + How to Boost Your Credit Score + Credit Repair Services + SELECT + All Personal Finance + Best Budgeting Apps + Best Expense Tracker Apps + Best Money Transfer Apps + Best Resale Apps and Sites + Buy Now Pay Later (BNPL) Apps + Best Debt Relief + SELECT + All Small Business + Best Small Business Savings Accounts + Best Small Business Checking Accounts + Best Credit Cards for Small Business + Best Small Business Loans + Best Tax Software for Small Business + SELECT + All Taxes + Best Tax Software + Best Tax Software for Small Businesses + Tax Refunds + SELECT + All Help for Low Credit Scores + Best Credit Cards for Bad Credit + Best Personal Loans for Bad Credit + Best Debt Consolidation Loans for Bad Credit + Personal Loans if You Don't Have Credit + Best Credit Cards for Building Credit + Personal Loans for 580 Credit Score or Lower + Personal Loans for 670 Credit Score or Lower + Best Mortgages for Bad Credit + Best Hardship Loans + How to Boost Your Credit Score + SELECT + All Investing + Best IRA Accounts + Best Roth IRA Accounts + Best Investing Apps + Best Free Stock Trading Platforms + Best Robo-Advisors + Index Funds + Mutual Funds + ETFs + Bonds * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN logo Markets Business Investing Tech Politics CNBC TV Watchlist Investing Club PRO Menu Autos Nikola founder Trevor Milton sentenced to four years in prison for fraud Published Mon, Dec 18 20238:40 AM ESTUpdated 2 Hours Ago thumbnail Michael Wayland@MikeWayland thumbnail Dan Mangan@_DanMangan WATCH LIVE Key Points * Nikola founder Trevor Milton was sentenced to four years in prison for defrauding investors of the electric- and hydrogen-powered truck maker. * Milton was found guilty in October 2022 on two counts of wire fraud and one count of securities fraud. * Milton became an overnight billionaire when he took Nikola public through a deal with a special purpose acquisition company in June 2020. In this article * NKLA Follow your favorite stocksCREATE FREE ACCOUNT Nikola founder Trevor Milton sentenced to four years for fraud watch now VIDEO1:5201:52 Nikola founder Trevor Milton sentenced to four years for fraud The Exchange Nikola founder Trevor Milton was sentenced Monday to four years in prison in connection to defrauding investors of the embattled electric- and hydrogen-powered truck maker. Milton also was fined $1 million and could later be forced to forfeit property as part of his sentence. The punishment was far lower than the 11 years prosecutors had requested at Milton's sentencing in U.S. District Court in Manhattan. But it was substantially more than the non-jail sentence of probation sought by Milton's attorneys. "I did not intend to harm anyone and I did not commit those crimes levied against me," Milton told Judge Edgar Ramos before being sentenced, Reuters reported. Milton has shown little to no remorse for his actions, prosecutors said. In a letter to Ramos on Sunday, prosecutors wrote that the judge should take into account Milton's "profound denial of accountability and insistence on blaming others." The judge allowed Milton to remain free on bail while he appeals his conviction, according to Reuters. Trevor Milton, founder of Nikola Corp., exits court in New York, US, on Monday, Dec. 18, 2023. Yuki Iwamura | Bloomberg | Getty Images Milton was convicted in October 2022 on two counts of wire fraud and one count of securities fraud. He had faced a recommended sentence of 60 years in prison under federal sentencing guidelines for those crimes. Restitution will be determined at a future proceeding, according to the U.S. Attorney's Office for the Southern District of New York "Trevor Milton lied to investors again and again -- on social media, on television, on podcasts, and in print. But today's sentence should be a warning to start-up founders and corporate executives everywhere -- 'fake it till you make it' is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price," Damian Williams, U.S. attorney for the Southern District of New York, said in a statement. Nikola in 2021 agreed to pay $125 million to settle civil charges brought by the U.S. Securities and Exchange Commission. Milton became an overnight billionaire when he took Nikola public through a deal with a special purpose acquisition company in June 2020. The company was quickly considered to be one of the most promising EV startups - valued at its peak at more than $30 billion - until allegations regarding false and misleading statements were uncovered by short-seller Hindenburg Research. Prosecutors compared Milton to disgraced Theranos founder Elizabeth Holmes, who was sentenced to more than 11 years in prison last year for defrauding investors in her blood-testing startup. "Just as Holmes lied about Theranos-manufactured blood analyzers, Milton lied about the operability of the Nikola One semitruck," prosecutors wrote to Ramos ahead of the sentencing. CEO and founder of U.S. Nikola, Trevor Milton speaks during presentation of its new full-electric and hydrogen fuel-cell battery trucks in partnership with CNH Industrial, at an event in Turin, Italy December 2, 2019. Massimo Pinca | Reuters Milton has attempted to distinguish himself from Holmes, whose company was private. His lawyers argued "that Nikola is still a real business, while Theranos is not," according to court documents. Milton, who was the company's largest shareholder, stepped down as executive chairman of Nikola in September 2020. He did so amid an internal probe after the Hindenburg report, which characterized the company as a house of cards built by Milton. Since Milton's resignation, shares of Nikola have cratered and the company has failed to retain executives. Nikola Chairman Stephen Girsky, whose SPAC brought the company public, was named CEO in August. Shares of Nikola have recently traded under $1, with a market value of about $296 million. The stock fell more than 9% on Monday. Nikola was among the first heavily publicized companies to go public through a SPAC. It inspired hundreds of other startups to do the same before the SEC cracked down on the practice. Prosecutors said the SPAC process, rather than a traditional IPO, allowed Milton to make many of the misleading or fraudulent statements. Under the IPO process, he would have not been allowed to make public statements during the time around the company going public. 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