Trevor Milton, founder and former CEO of electric vehicle maker Nikola (NASDAQ:NKLA), was sentenced Monday to four years for defrauding investors.
The sentence was notably lower than the 11-year term that federal prosecutors had requested. Trevor Milton was potentially facing a maximum penalty of up to 60 years in prison before the sentencing.
It was determined that Milton lied to investors and the public about the company’s hydrogen and electric truck technology.
In October of 2022, the US Attorney’s Office in the Southern District of New York alleged that Milton had engaged in a pattern of deceptive behavior, making untrue and deceptive claims across “nearly all aspects of the business”.
Additionally, he was accused of defrauding the public through misleading statements made on social media and during podcast interviews.
Since the accusations, shares of NKLA have plummeted from their peak of more than $73 per share, and are currently trading under one dollar.
Shares of NKLA are down 0.60% in afternoon trading on Monday.