New York. Trevor Milton, the former founder and CEO of electric truck startup Nikola, has been sentenced to four years in prison for securities fraud.
In the ruling, Judge Edgardo Ramos in the U.S. District Court in Manhattan said he would impose a sentence of 48 months on each count, as well as a $1 million fine.
Milton is expected to appeal the sentence, which Ramos has accepted, TechCrunch reports.
Milton said in his statement, “I stepped down in view of my wife’s serious illness.”
He said, “My wife is facing medical malpractice. I quit for him, not because I was a fraud. Truth matters. I chose my wife over money or power. ,
Milton, 41, was convicted by a jury in October 2022 of one count of securities fraud and two counts of wire fraud.
According to reports, he was found guilty of lying to investors about Nikola’s development of electric trucks in order to boost the company’s stock price.
Prosecutors have accused Milton of defrauding investors by making improper statements since 2019, including that Nikola built a truck from the “ground up.”
The company paid a $125 million fine in a settlement with the U.S. Securities and Exchange Commission (SEC).
In October, an arbitration panel in New York ordered Milton to pay the company $165 million.
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Web Title-Founder of EV truck firm Nikola gets 4 years in prison in securities fraud case