Nikola founder was a ‘con man,’ U.S. prosecutor tells jurors

NEW YORK, Oct 13 (Reuters) – A federal prosecutor on Thursday urged jurors to convict Nikola Corp (NKLA.O) founder Trevor Milton of fraud, calling him a “con man” who lied in regards to the low-emission automobile firm to defraud odd buyers.

The prosecution and protection delivered their closing arguments in Milton’s New York Metropolis trial, which started final month.

Assistant U.S. Lawyer Jordan Estes stated Milton deceived buyers in regards to the electric- and hydrogen-powered truck maker’s expertise beginning in November 2019. Milton left the corporate in September 2020 after a report by quick vendor Hindenburg Analysis known as the corporate a “fraud.”

Protection lawyer Marc Mukasey informed the jury that prosecutors had twisted Milton’s statements about Nikola’s plans to shake up the automotive business.

“It is a distortion to say that Trevor Milton meant to commit fraud when the statements he made had been in regards to the Nikola enterprise mannequin,” Mukasey stated.

Although Milton generally “fell into the incorrect grammatical tense,” different executives did, too, Mukasey added.

Estes recapped proof from the trial together with testimony from particular person retail buyers who prosecutors have stated Milton focused in podcasts, interviews and social media.

“Trevor Milton is a con man,” Estes stated. “His lies could have been on social media, however his was an old school fraud.”

Prosecutors in the course of the trial stated Milton made false statements about Nikola’s progress on creating its expertise as the corporate joined the mounting variety of tech and electrical automobile firms going public by way of particular function acquisition automobiles, or SPACs.

In addition they stated Milton’s improper statements included that Nikola constructed an electric- and hydrogen-powered “Badger” pickup from the “floor up,” developed batteries in-house that he knew it was buying elsewhere and had early success in making a “Nikola One” semi-truck he knew didn’t work.

Milton was obsessive about the corporate’s inventory worth and made the statements to inflate it and his web value, Estes informed the jury.

Mukasey countered that Milton was open about his curiosity within the inventory worth with high Nikola executives and that they praised his statements in emails. It was solely after the federal government began investigating that Nikola turned on its founder, Mukasey stated.

“In case you are being investigated by the federal government and also you need them to go away, you say what the federal government desires,” Mukasey stated.

Milton’s attorneys even have stated Nikola’s filings with the U.S. Securities and Change Fee made clear it was an early-stage firm and that investments in it had been extremely speculative.

The case is U.S. v. Milton, U.S. District Courtroom, Southern District of New York, No. 1:21-cr-00478.

Reporting by Jody Godoy in New York; Enhancing by Will Dunham and Noeleen Walder

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