The new allegation relates to Milton’s alleged attempt to defraud the seller of Wasatch Creeks Ranch in Utah by making false and misleading statements about Nikola’s products and business prospects.
see photosTrevor Milton, (c) founder and former CEO of Nikola Corp.
US prosecutors added a new wire fraud charge to their criminal case on Wednesday, accusing Nikola Corp. founder and former chief executive Trevor Milton of defrauding investors by lying about the electric and hydrogen-powered truck maker.
The new allegation relates to Milton’s alleged attempt to defraud the seller of Wasatch Creeks Ranch in Utah by making false and misleading statements about Nikola’s products and business prospects.
Milton previously pleaded not guilty to two counts of securities fraud and one count of wire fraud on statements made from November 2019 to September 2020. His July 18 jury trial is scheduled in Manhattan federal court.
Milton’s lawyers did not immediately respond to requests for comment.
The new fraud allegation relates to Milton’s purchase of Wasatch Creeks Ranch from a Massachusetts man who said he accepted Nikola stock options as part of the purchase price based on Milton’s claims about the company.
In a civil complaint filed in Utah federal court on March 14, the seller stated that the option’s value was “destroyed” because Milton’s alleged lies were exposed and Nikola’s stock price had collapsed. The lawsuit wants $45 million.
Milton’s criminal case is one of the most prominent cases involving a company that went public after a merger with a Special Purpose Acquisition Company, or SPAC.
Critics say the process is prone to conflicts of interest and poor due diligence.
Nicola went public in June 2020. Officials have said Milton misled investors in social media posts, TV appearances and podcast interviews designed to raise Nikola’s share price and boost his stature as an entrepreneur.
In December, Nikola agreed to pay $125 million to settle a related US Securities and Exchange Commission civil fraud case.
Nicola neither accepted nor denied the SEC’s allegations. The SEC has also accused Milton of civil fraud.
Milton, a former billionaire, asked a judge in his criminal case on Monday not to let jurors hear evidence about his wealth, lifestyle and spending habits, saying it was unfair, according to Forbes magazine. would be prejudiced.
(Reporting by Jonathan Stempel in New York; Editing by Jonathan Otis, Nick Ziminsky and Richard Chang)
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