- Shares of Nikola fell as much as 10% on Thursday after its founder Trevor Milton was charged with fraud.
- The US Attorney's Office in Manhattan charged Milton with three counts of fraud for allegedly lying about "nearly all aspects of the business."
- Milton stepped down from Nikola as its CEO and Chairman last year following the fallout from a short report from Hindenburg Research.
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Nikola fell as much as 10% on Thursday after the US Department of Justice charged founder Trevor Milton with three counts of fraud.
Milton was indicted for allegedly lying about "nearly all aspects of the business," according to a grand jury indictment unsealed on Thursday.
"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 indictment said.
The false claims Milton allegedly made about Nikola's business range from its battery capabilities to its Badger electric pick-up truck, which was ultimately abandoned by the company.
Milton may have to forfeit all property "traceable to the commission of said offenses," which could include the more than $1 billion he made when Nikola went public via a SPAC merger in June of 2020, the grand jury said.
A short report from Hindenburg Research in September unveiled a number of lies made by Milton and Nikola, including a video promotion for one of its vehicles that was rolled down a hill to make it look like it was being driven. Milton stepped down from the company as its CEO and Chairman shortly after the short report.
