Nikola
Milton, who resigned as the electric truck company's chairman back in September, has been charged with two counts of securities fraud, including making false statements about the company, as well as wire fraud, by the U.S. Attorney's Officer in Manhattan.
The SEC requested that the United States District Court of the Southern District of New York to forever ban him from behaving as officer at a company that gives out securities, so as to be rid of all corrupt and deceitful profit and to administer a fine.
"This is a very straightforward case, Milton told lies to generate popular demand for Nikola stock, Beginning at least in or about March 2020, when Nikola announced that its stock would become publicly listed, Milton became increasingly preoccupied with keeping Nikola's stock price high," U.S. Attorney Audrey Strauss informed reporters at a press briefing on Thursday, quoted by CNBC.
Prosecutors also have revealed that Milton established a very detailed plan that was intended to accelerate the company's stock for his own benefit through dishonesty regarding the company's products, technology, and future sales prospects.
"Milton's scheme targeted individual, non-professional investors - so-called retail investors - by making false and misleading statements directly to the investing public through social media, and television, print and podcast interviews," the 49-page indictment stated.
The grand jury stated that Milton ought to give up all property that is "traceable to the commission of said offenses," which involves the $1 billion that he gained as soon as Nikola went public in June 2020. Prosecutors revealed that Milton "was motivated to engage in the fraudulent scheme in order to enrich himself and elevate his stature as an entrepreneur."
Milton has since pleaded not guilty to the charges and has been released on a $100 million bond secured against two of his properties. He has been barred from contacting investors at this time.
