Indicted Billionaire Trevor Milton Has Sold Nearly $300 Million Worth Of Nikola Stock Since Criminal Fraud Charges

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Nikola Motor’s former chairman, Trevor Milton, has sold a substantial stake in the electric-truck maker he founded nearly seven years ago in recent months, selling $131 million in stock in the past week and nearly $300 million worth of sales. because he had not requested. Guilty of three counts of criminal fraud this summer.

important facts

in a regulator filing Released Tuesday night, Milton, 40, revealed that he sold nearly 11.7 million shares in multiple transactions between Friday and Tuesday, generating about $131 million in pre-tax income.

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This month’s sales follow a string of transactions in August, when Milton sold nearly 16.8 million shares for $153.3 million before taxes — three counts of criminal fraud for allegedly defrauding Nikola investors. A few days after the allegation of

Milton pleaded not guilty to the charges in a Manhattan courtroom on July 29 and was freed on $100 million bail, which was Allegedly Milton owns two properties in his home state of Utah, which are worth a combined $40 million.

Even after accounting for taxes on the transaction, Businesshala There are still estimates to value Milton at around $1 billion, but that’s a far cry from the nearly $8.7 billion price it hit in June 2020, when Nikola stock reached a closing price of $65.90 — a drop from their current value of $10.72. was almost seven times.

Shares of Nikola rose 3% on Wednesday morning, but are still down 33% this year and about 20% since the late July fee.

Representatives for Milton and Nicola did not immediately respond. Businesshala‘ Request for comment.

amazing facts

in indictment unsealed In July, the US Attorney’s office in Manhattan charged Milton with two counts of securities fraud and one count of wire fraud, alleging that the former Nikola CEO made misleading and false statements about the company between November 2019 and September 2020. So that investors can be deceived into buying shares. “In order to drive up investor demand for Nikola stock, Milton lied about almost every aspect of his business,” Manhattan U.S. Attorney Audrey Strauss said at the time.

main background

Nikola’s stock price skyrocketed since it debuted on the Nasdaq last June, but it has traded sharply lower since short-seller Hindenburg, who says the firm has no position, said a report last September. was published in which the electric-vehicle company was called a “complicated fraud”. ” And alleging that Milton, the then chairman, misled investors about the company’s business. Department of Justice and SEC started His investigation at the firm a few days later. Milton has since resigned, legacy carmaker GM pulled out of a major partnership with the firm late last year, and shares of Nikola have fallen 83% from all-time highs. Earlier this month, Nicola, who was not charged with wrongdoing under Milton’s criminal charges, said he has a tentative settlement to resolve his SEC investigation by paying a $125 million fine.

big number

27 million. How many Nikola shares has Milton dumped since August? However, despite the heavy transactions, he still owns more than 50 million shares – representing about 12% stake in the firm.

Nikola has tentative deal to settle SEC probe with $125 million fine (Businesshala)

Billionaire Nikola founder Trevor Milton pleads not guilty to criminal fraud charges, freed on $100 million bail (Businesshala)

Accused Nikola founder Trevor Milton has lost more than $7 billion due to falling shares (Businesshala)

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