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Trevor Milton

Summary

Trevor Robert Milton (born April 6, 1982) is an American convicted felon, former businessman and the founder and former executive chairman and CEO of Nikola Corporation. In September 2020, Milton resigned from his position as executive chairman after the U.S. SEC and Department of Justice began investigating claims that Milton and Nikola committed securities fraud.[2][3] In July 2021, Milton was indicted by federal prosecutors on three counts of securities fraud and wire fraud and released on $100 million bail.[4][5][6] In June 2022, he was charged with another count of wire fraud.[7] In October 2022, he was found guilty on three of the four counts, and received a 4 year prison sentence, a $1 million fine, and may be forced to forfeit part of his property holdings as a part of his sentence.[8][9]

Trevor Milton
Milton in 2017
Born
Trevor Robert Milton

(1982-04-06) April 6, 1982 (age 42)
Layton, Utah, U.S.[1]
OccupationBusinessman
Years active2015–2020
Known forFounder, former executive chairman and CEO, Nikola Corporation
Spouse
Chelsey Bergmann
​
(m. 2018)​

Early life and education edit

Milton was born in Layton, Utah to William "Bill" L. Milton, a Union Pacific Railroad manager, and Sallie Gwyn Hunt Milton (1952–1997), a Realtor. He has a brother and three sisters. The family moved to Las Vegas when Milton was a toddler and moved again to Kanab, Utah when he was eight. When he was 15 years old, his mother died from cancer.[10][11]

Milton is a member of The Church of Jesus Christ of Latter-day Saints (LDS). After graduating high school, Milton went on a LDS mission to Brazil, where he learned to speak fluent Portuguese. However, ill health cut his mission short after 18 months.[10][11] He says he dropped out of college after one semester at Utah Valley University to pursue a career in sales and marketing, although federal prosecutors say, in reality, he was expelled for "hiring others to complete his work for him."[11][12]

Career edit

Milton started an alarm sales company called St. George Security and Alarm after leaving college and eventually exited the business for a stated $300,000, though his former business partner claims he was led to believe the exit payment was "much smaller."[13] Milton then launched an online classified ads website selling used cars, which eventually failed.

Afterwards, Milton founded an alternative energy vehicle company called dHybrid, Inc. which retrofitted commercial trucks with engines that could run on natural gas instead of diesel. After entering into a deal with an investor for a large stake in dHybrid, Milton claimed that "the investor was taking [their] intellectual property", resulting in dHybrid Inc suing the investor and Milton closing the company.[14] Milton then started dHybrid Systems, which was similar to the previous company except with a greater focus on building natural gas and hydrogen storage systems.[14] According to Milton, dHybrid was purchased by Worthington Industries.[15]

In 2015, Milton founded Nikola Motor Company with an initial investment of $2 million from Worthington.[16][14][17] Trevor was the CEO in Nikola's early years.[18] In June 2020, as part of a reverse merger with VectoIQ in order to have Nikola go public, Milton became executive chairman of the board and turned over the CEO role to President Mark Russell.[19]

Fraud allegations and trial edit

On September 10, 2020, two days after Nikola established ties with General Motors, short seller Hindenburg Research released a report accusing Milton of making false statements over the course of many years and characterizing Nikola Motor Company as "an intricate fraud."[13] It was later revealed that Hindenburg Research was working with a Nikola whistleblower using the Twitter handle @InsiderNikola for the report and that amateur private investigators were surveilling them on behalf of the company.[20] Nikola's stock fell by eight percent that day and fell an additional 15 percent the following day, after Milton failed to deliver his rebuttal as he previously promised on Twitter.[21][22][23] Research by Bloomberg and the Financial Times confirmed some details in the Hindenberg report.[24][25] Nikola denied the allegations of fraud outlined in the report and said it contained misleading information.[26]

As of September 10, 2020, Nikola Motor Company was being sued by at least one law firm representing shareholders for possible fraud.[27]

On September 14, 2020, the Wall Street Journal and others reported that the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) had started an investigation into potential securities fraud committed by Milton and Nikola.[28][29][30]

On September 20, 2020, Milton resigned from his position as Executive Chairman of Nikola Corporation, just weeks after tweeting that "cowards run, leaders stay and fight".[2][31][32][33] As part of his exit package, Milton remained an unpaid consultant to Nikola until December 2020.[34] He was not allowed to comment about Nikola on social media, online blogs, or any other internet platforms without permission from the company.[34] Milton retained 91.6 million shares of Nikola that were worth roughly $3.1 billion in late September 2020.[34]

On September 22, 2020, a rumor appeared on a Twitter satire account claiming Milton had been arrested by the Federal Bureau of Investigation and DOJ at Sky Harbor Airport in Phoenix, Arizona.[35] The tweet was picked up by Techcrunch and other major outlets; hours later, it was revealed as a hoax, and Techcrunch publicly apologized.[35][36] Following the public attention, Milton deactivated his Twitter and Instagram accounts.[35][37]

In July 2021, a United States federal grand jury returned an indictment against Trevor Milton that included three counts of securities fraud and wire fraud. He also faced civil securities fraud charges from the SEC.[38][39][40] He surrendered to authorities.[41][4][39][40] Milton pled not guilty to the charges and was freed on $100 million bail.[42] In June 2022, Milton was charged with an additional wire fraud charge.[43] In October 2022, after a day of deliberation, the jury found Milton guilty on one count of securities fraud and two counts of wire fraud.[44]

Sentencing was delayed until December 18, 2023, when Milton was sentenced to four years in prison, he also received a $1 million fine and may be forced to forfeit some of his property holdings as a part of his sentence.[45][46]

Sexual misconduct allegations edit

In September 2020, Aubrey Ferrin Smith, Milton's cousin, accused him of sexually assaulting her at their grandfather’s funeral in 1999, when she was 15 and he was 18.[47] The Wall Street Journal later confirmed several details of the accusation, including that Smith was, indeed, Milton's cousin and that Smith had told family members about the incident months after it had allegedly occurred. Family members also told the Wall Street Journal that religious authorities were notified, but no charges were filed.[48][49][50] CNBC later confirmed that Smith had filed a formal complaint with the local police in Holladay, Utah where the alleged assault took place. CNBC additionally confirmed that in 2017 when the #MeToo movement was taking place, Smith published an account of the assault on Facebook without identifying Milton by name.[51] In their reports regarding the sexual assault allegation against Milton, both CNBC and the Wall Street Journal reported Milton's age at the time of the alleged sexual assault against his cousin as actually 17, not 18, which could make the allegation into a misdemeanor instead of a felony.[52][53][54]

On September 28, 2020, CNBC reported that a second anonymous woman had come forward claiming that she had been assaulted by Milton. She later agreed to be identified by her first name, Allison.[55] The alleged incident is said to have occurred in 2004 when the alleged victim was 15 and Milton was 22. The alleged assault was reported to the St. George Police Department.[56] Milton reportedly bragged to his then-friend and roommate - the two had a falling out shortly thereafter - that he "took her virginity in the theater room" and "I like young girls and I like virgins because they are naïve."[57][51] A local Utah television station reported in 2022 that at least three women had accused Milton of sexual misconduct - the two mentioned above, as well as a third which allegedly occurred during a modeling trip. Two of the three cases were beyond the statute of limitations. [58]

Milton has denied the allegations, saying through a spokesperson, “At no point in his life has Mr. Milton ever engaged in any inappropriate physical contact with anyone."[59] On October 5, 2020, Milton sued Utah businessman David Bateman in Utah Federal District Court for defamation per se for publishing allegations against Milton, including that he was involved in sex trafficking and has assaulted numerous unnamed women.[60]

Personal life edit

Milton lives in Phoenix, Arizona with his wife, Chelsey Bergmann, whom he married in 2017.[61][62] In November 2019, the Los Angeles Times reported that Milton had bought a 2,000-acre Utah ranch with a 16,800 square foot riverside mansion for $32.5 million.[63] The purchase price set a new record for a home in the state.[64] He is friends with Dave "Heavy D" Sparks.[65][66]

In September 2020, Forbes assessed Milton's net worth to be at at least $3.1 billion, as he owned about 25% of Nikola, which was valued at about $12.4 billion[67] at the time. By June 2023, the total market capitalization of Nikola had dropped under $400 million.

References edit

  1. ^ Wiles, Russ (October 4, 2020). "Nikola founder Trevor Milton made a splash in Arizona before abruptly leaving the company. What happens next?". AZCentral. The Arizona Republic. Retrieved July 29, 2021.
  2. ^ a b "Nikola founder Trevor Milton to voluntarily step down as executive chairman; stock plunges". CNBC. September 21, 2020.
  3. ^ Boudette, Neal E.; Ewing, Jack (September 21, 2020). "Head of Nikola, a G.M. Electric Truck Partner, Quits Amid Fraud Claims". The New York Times. ISSN 0362-4331. Retrieved January 23, 2021.
  4. ^ a b Ramey, Corinne (July 29, 2021). "Nikola Founder Trevor Milton Charged With Lying to Investors". Wall Street Journal. ISSN 0099-9660. Retrieved July 29, 2021.
  5. ^ "Former Nikola Corporation CEO Trevor Milton Charged In Securities Fraud Scheme". www.justice.gov. July 29, 2021. Retrieved July 29, 2021.
  6. ^ Wayland, Michael (July 29, 2021). "Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $100 million bail". CNBC. Retrieved August 2, 2021.
  7. ^ Wayland, John Rosevear,Michael (June 22, 2022). "Nikola founder Trevor Milton faces new federal fraud charge tied to ranch purchase". CNBC. Retrieved October 6, 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  8. ^ Rosevear, John (October 14, 2022). "Nikola founder Trevor Milton found guilty of fraud over statements he made while CEO of the EV company". CNBC. Retrieved October 14, 2022.
  9. ^ Mangan, Michael Wayland,Dan (December 18, 2023). "Nikola founder Trevor Milton sentenced to four years in prison for fraud". CNBC. Retrieved January 5, 2024.{{cite web}}: CS1 maint: multiple names: authors list (link)
  10. ^ a b Parloff, Roger (December 15, 2020). "Nikola's Trevor Milton left a trail of bitterness on his way to founding the electric-truck startup". Yahoo Finance. Retrieved April 6, 2024.
  11. ^ a b c O'Dell, John (May 8, 2019). "Rough Childhood Helped Shape Nikola's Trevor Milton". Trucks.com. Archived from the original on September 5, 2019. Retrieved September 5, 2019.
  12. ^ Herbets, Adam. "FOX 13 News". FOX 13 News. FOX 13 News. Retrieved December 15, 2023.
  13. ^ a b "Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America". Hindenburg Research. September 10, 2020. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  14. ^ a b c "Nikola Motor Founder Lost Everything Twice, Then Started Company Now Worth Billions". Forbes. May 18, 2020.
  15. ^ "'Trillion-Dollar Company'? Q&A with Nikola Motor Founder Trevor Milton". Trucks.com. February 18, 2019. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  16. ^ Quick History of Nikola Motor Company, the Embattled Hydrogen and Electric Vehicle Startup at MSN; retrieved September 7, 2021
  17. ^ "Early Nikola Investor Worthington Posts Gain on Share Sale". Bloomberg. September 23, 2020.
  18. ^ Hsu, Tiffany (December 2, 2016). "Nikola CEO Milton Explains Hydrogen Fuel Cell Truck Strategy". Trucks.com. Retrieved August 1, 2021.
  19. ^ Ohnsman, Alan (June 12, 2020). "Nikola Stock Surge Turns CEO Mark Russell Into Hydrogen Truckmaker's Second Billionaire". Forbes. Retrieved August 1, 2021.
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  21. ^ "Nikola shares fall after short seller claims business is an 'intricate fraud'". Financial Times. September 10, 2020. Archived from the original on September 11, 2020.
  22. ^ Linnane, Ciara. "UPDATE: Short seller Hindenburg alleges that electric truck maker Nikola is an 'intricate fraud' in new report". MarketWatch. Archived from the original on September 11, 2020. Retrieved September 11, 2020.
  23. ^ "Short-seller accuses GM-backed Nikola Motors of being 'intricate fraud' | Fox Business". www.foxbusiness.com. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  24. ^ "Nikola's History of Discrepancies Has Been in Plain Sight". Bloomberg.com. Archived from the original on September 12, 2020. Retrieved September 13, 2020.
  25. ^ "Nikola shares fall after short seller claims business is an 'intricate fraud'". Financial Times. September 10, 2020. Archived from the original on September 13, 2020. Retrieved September 14, 2020.
  26. ^ "Nikola Denies Short Seller's Fraud Allegations". Wall Street Journal. September 11, 2020.
  27. ^ "INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Nikola Corporation and Encourages Investors with Losses of $100,000 to Contact the Firm". www.businesswire.com. September 10, 2020. Archived from the original on September 14, 2020. Retrieved September 14, 2020.
  28. ^ Foldy, Ben (September 15, 2020). "Justice Department Probes Electric-Truck Startup Nikola Over Claims It Misled Investors". Wall Street Journal. ISSN 0099-9660. Archived from the original on September 15, 2020. Retrieved September 15, 2020.
  29. ^ Riley, Charles; Valdes-Dapena, Peter (September 21, 2020). "Nikola founder Trevor Milton steps down as chairman in battle with short seller". CNN. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  30. ^ Bushey, Claire (September 15, 2020). "US justice department inquires into Nikola fraud claims". Financial Times. Peter Campbell, Kadhim Shubber. Archived from the original on September 24, 2020.
  31. ^ "Nikola Board of Directors Announces Leadership Transition". finance.yahoo.com. Archived from the original on September 21, 2020. Retrieved September 21, 2020.
  32. ^ Ohnsman, Alan. "Nikola Founder Trevor Milton Resigns After Short-Seller's Fraud Accusations". Forbes. Archived from the original on September 22, 2020. Retrieved September 21, 2020.
  33. ^ Boudette, Neal E.; Ewing, Jack (September 21, 2020). "Head of Nikola, a G.M. Electric Truck Partner, Quits Amid Fraud Claims". The New York Times. ISSN 0362-4331. Archived from the original on September 23, 2020. Retrieved September 24, 2020.
  34. ^ a b c Kopecki, Dawn; Wayland, Michael (September 21, 2020). "Nikola founder Trevor Milton forfeits $166 million in stock he would have lost anyway and gets to keep $3.1 billion under separation deal". CNBC. Archived from the original on September 22, 2020. Retrieved September 23, 2020.
  35. ^ a b c Burns, Matt (September 21, 2020). "Nikola's chairman steps down, stock crashes following allegations of fraud". TechCrunch. Archived from the original on September 14, 2021. Retrieved August 1, 2021.
  36. ^ Iqbal, Saman (September 21, 2020). "Nikola founder Trevor Milton not arrested by DOJ, FBI [UPDATE]". Insider Paper. Retrieved August 1, 2021.
  37. ^ Vega, Nicolas (September 22, 2020). "Nikola founder Trevor Milton deletes Twitter account amid fraud claims". New York Post. Archived from the original on September 30, 2020. Retrieved September 24, 2020.
  38. ^ Wayland, Michael (July 29, 2021). "Grand jury indicts Trevor Milton, founder of electric carmaker Nikola, on three counts of fraud". CNBC. Archived from the original on July 29, 2021. Retrieved July 29, 2021.
  39. ^ a b Wayland, Michael (July 29, 2021). "U.S. prosecutors charge Trevor Milton, founder of electric carmaker Nikola, with three counts of fraud". CNBC. Retrieved July 29, 2021.
  40. ^ a b Goldstein, Matthew; Chokshi, Niraj (July 29, 2021). "Nikola Founder Is Charged With Fraud in Rebuke to Wall Street". The New York Times. ISSN 0362-4331. Retrieved August 1, 2021.
  41. ^ "Former Nikola Corporation CEO Trevor Milton Charged In Securities Fraud Scheme". United States Department of Justice. July 29, 2021.
  42. ^ Wayland, Michael (July 29, 2021). "Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $100 million bail". CNBC. Retrieved August 1, 2021.
  43. ^ Wayland, John Rosevear,Michael (June 22, 2022). "Nikola founder Trevor Milton faces new federal fraud charge tied to ranch purchase". CNBC. Retrieved October 6, 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  44. ^ Rosevear, John (October 14, 2022). "Nikola founder Trevor Milton found guilty of fraud over statements he made while CEO of the EV company". CNBC. Retrieved October 14, 2022.
  45. ^ Herbets, Adam (November 28, 2023). "Sentencing of Utah billionaire Trevor Milton delayed again". Fox13Now. Retrieved November 29, 2023.
  46. ^ Ramey, Corinne; Foldy, Ben. "Trevor Milton Gets Four Years in Prison for Deceptions on Zero-Emission Trucks". The Wall Street Journal.
  47. ^ Smith, Aubrey [@aubreyfsmith] (September 21, 2020). "Trevor Milton is my cousin. On September 12, 1999--the day of our grandfather's funeral--Trevor sexually assaulted me. I was 15 years old, and he was 18" (Tweet). Archived from the original on July 30, 2021. Retrieved November 14, 2021 – via Twitter.
  48. ^ Boston, Ben Foldy and William (September 21, 2020). "Nikola Founder Trevor Milton Resigns as Executive Chairman Amid Fraud Allegations". Wall Street Journal. ISSN 0099-9660. Archived from the original on September 22, 2020. Retrieved September 22, 2020.
  49. ^ "Sexual Assault Accusations Drive Ex-Nikola CEO To Delete Twitter Account A Day After Resigning". Jalopnik. September 22, 2020. Archived from the original on September 24, 2020. Retrieved September 24, 2020.
  50. ^ Kelly, Jack. "Nikola Founder Resigns: The Wild Cautionary Tale Of Trevor Milton Copycatting Elon Musk And Tesla". Forbes. Archived from the original on September 24, 2020. Retrieved September 24, 2020.
  51. ^ a b Wayland, Dawn Kopecki,Michael (September 29, 2020). "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. Archived from the original on September 29, 2020. Retrieved September 29, 2020.{{cite web}}: CS1 maint: multiple names: authors list (link)
  52. ^ "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. September 29, 2020.
  53. ^ Foldy, Ben; Boston, William (September 21, 2020). "Nikola Founder Trevor Milton Resigns as Executive Chairman Amid Fraud Allegations". Wall Street Journal.
  54. ^ "Statutory Rape Laws in Utah | Unlawful Sex with a Minor".
  55. ^ "FOX 13 Investigates: Utah AG did not investigate billionaire, future campaign donor for sex assault". November 22, 2022.
  56. ^ "FOX 13 Investigates: Utah AG did not investigate billionaire, future campaign donor for sex assault". November 22, 2022.
  57. ^ Sonnemaker, Tyler. "A 2nd woman has reportedly accused Nikola Motors founder Trevor Milton of sexual assault". Business Insider. Archived from the original on September 29, 2020. Retrieved September 29, 2020.
  58. ^ "FOX 13 Investigates: Utah AG did not investigate billionaire, future campaign donor for sex assault". November 22, 2022.
  59. ^ Wayland, Dawn Kopecki,Michael (September 29, 2020). "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. Retrieved January 15, 2021.{{cite web}}: CS1 maint: multiple names: authors list (link)
  60. ^ "Nikola founder Trevor Milton sues Utah businessman for defamation over tweets about treatment of women". CNBC. October 7, 2020.
  61. ^ Laviola, Erin (September 21, 2020). "Trevor Milton's Wife & Family: 5 Fast Facts You Need to Know". Heavy.com. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  62. ^ "Forbes profile: Trevor Milton". Forbes. Archived from the original on July 27, 2020. Retrieved September 11, 2020.
  63. ^ Flemming, Jack (November 14, 2019). "Nikola Motor head Trevor Milton drops $32.5 million on 2,000-acre Utah ranch". Los Angeles Times. Archived from the original on June 9, 2020. Retrieved June 10, 2020.
  64. ^ Clarke, Katherine (November 13, 2019). "Nikola Motor Chief Sets Utah Real Estate Record With $32.5 Million Buy". www.mansionglobal.com. Archived from the original on September 23, 2020. Retrieved September 21, 2020.
  65. ^ "Nikola Sells Abandoned EV Pickup Truck Program to Friend of Convicted Founder, Heavy D". SPAC News. February 22, 2024. Retrieved April 12, 2024.
  66. ^ "Sparks Fly After Disgraced Founder Picks Dave Sparks For Nikola Board".
  67. ^ Garber, Jonathan (September 15, 2020). "Nikola CEO buys shares in face of SEC probe". Fox Business. Archived from the original on September 15, 2020. Retrieved September 15, 2020.

External links edit

  • CNBC Interview: Nikola executive chairman Trevor Milton on the company's public debut
  • Q&A podcast with Trevor Milton, focusing on Nikola's financials and technology

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