Nikola Founder Milton to Face Securities Fraud Charges

The founder and one-time executive chair of Nikola Corp. surrendered Thursday in New York on criminal charges alleging that he made false and misleading statements to investors about the electric and hydrogen-powered truck startup.

Trevor Milton resigned from Nikola in September amid allegations of fraud. At the time, Milton said he would defend himself against accusations that the company made false claims about its vehicles, allegations Nikola rejects.

In an indictment unsealed Thursday in Manhattan federal court, prosecutors charged Milton with two counts of securities fraud and one count of wire fraud.

He was accused in the indictment of making false and misleading statements through social media and television, print and podcast interviews about the company’s product and technology development.

The indictment said the claims were deceptive, false and misleading. A message seeking comment was left with his lawyer.

Milton was scheduled to make an initial court appearance in the afternoon.

Shares of Nikola Corp. tumbled 7% before the opening bell Thursday.

Watch more: 

More Cheddar coverage of Nikola: 

Nikola Founder Says Market Rewards Companies Willing to Transform Industries

Nikola Founder: 'We Have a Lot to Learn' After First Earnings Report

Nikola Partners With GM in Battle for Electric Vehicle Supremacy

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