Nikola founder Trevor Milton freed on US$100 million bail after fraud arrest
- US charges Nikola founder Trevor Milton with lying to investors
- Judge allows Milton to go free on US$100 million bond
The founder and one-time executive chair of Nikola Corp was freed on US$100 million bail after pleading not guilty to charges alleging he lied about the electric and hydrogen-powered truck start-up, duping novice investors including some financially struggling people looking for income during the pandemic.
Trevor Milton, 39, of Oakley, Utah, 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 unsealed indictment Manhattan federal court, Milton was charged with securities and wire fraud.
At an arraignment on Thursday, Milton pleaded not guilty. He was released on US$100 million bail, secured by two Utah properties, including one that a prosecutor said was recently appraised at US$36 million. Magistrate Judge Sarah Netburn ordered him not to contact investors unless he had an independent relationship with them.
Marc Mukasey, one of Milton’s lawyers, alerted the judge that some financial information in the court record would have to be revised, including a statement that some Milton bank accounts contained US$50 million.