Trump Grants Pardon to Nikola Founder Trevor Milton: A Controversial Move in the EV Industry

Trevor Milton, the founder of the now-bankrupt hydrogen trucking startup Nikola, has received a presidential pardon from President Trump, as confirmed by the White House to TechCrunch. This development marks a significant turn of events for Milton, who was previously convicted of fraud.

Background on Trevor Milton’s Legal Troubles

In October 2022, Milton was found guilty of one count of securities fraud and two counts of wire fraud. These charges were related to misleading claims made to investors about Nikola’s progress. In December 2023, he was sentenced to four years in prison but was out on a $100 million bond while appealing the sentence.

Timing of the Pardon

The pardon comes shortly after Nikola filed for Chapter 11 bankruptcy. The company has been working with a bankruptcy court in Delaware to explore options for selling the business, aiming to finalize a deal by mid-April.

Milton expressed his dissatisfaction with the judicial process, stating, “It is no wonder why trust and confidence in the Justice Department has eroded to nothing. I wish judges would stop believing whatever the prosecutors feed them so Americans could trust the justice system again.”

Milton’s Conviction and Legal Representation

Milton’s conviction was the result of a jury trial, during which he was represented by Brad Bondi, a partner at the law firm Paul Hastings and brother of the current U.S. Attorney General, Pam Bondi.

Future Plans and Documentary

Now that he has been pardoned, Milton plans to release a documentary detailing his perspective on the Nikola saga. He founded Nikola in 2014, but the company gained widespread attention in 2020 when it went public by merging with a special purpose acquisition company (SPAC). This merger generated significant investor interest, particularly after General Motors announced a $2 billion investment in September 2020.

Challenges and Allegations Faced by Nikola

However, Nikola’s fortunes shifted dramatically after a report from Hindenburg Research accused Milton of fraud shortly after GM’s investment announcement. This led the Securities and Exchange Commission (SEC) to initiate an investigation and prompted GM to withdraw from the deal. Milton resigned, claiming it was to support his ailing wife.

Legal Charges and Financial Ramifications

In July 2021, prosecutors from the Southern District of New York charged Milton with making “false and misleading statements regarding Nikola’s product and technology development” through various media outlets. These statements were allegedly intended to persuade retail investors to buy Nikola stock.

After his conviction, a judge ruled that Milton must pay nearly $168 million to his former company, a sum that is expected to influence Nikola’s ongoing bankruptcy proceedings. The proceeds from this payment are intended to help settle a class action lawsuit brought by Nikola’s shareholders.

For more information on Nikola’s bankruptcy and related developments, visit our Nikola Bankruptcy Updates page.