Former Executive Chairman of Nikola, Trevor Milton sold 7 million of his 79 million shares in the electric truck startup, Nikola last week, for $71.5 million most likely for his legal battle for federal fraud charges. The SEC is suing Milton for alleged violations of federal securities laws.
Milton hired two lawyers who defended Tesla CEO Elon Musk when he was in trouble with the Securities and Exchange Commission. However, charges against Trevor Milton are more serious. Milton is being charged criminally with two counts of securities fraud and one count of wire fraud on July 29, alleging that he sought to manipulate the company’s stock price through false and over exaggerated claims about the company’s technology and products.
Milton is out free on a $100 million bond put up by the 2,000-acre Utah ranch he purchased for $32.5 million in 2019. According to SEC filings, Milton transferred 600,000 shares to his spouse.
In a 10-Q filing, Nikola has sold just over 1 million of the shares to Tumim for $14.8 million. Nikola may sell shares to get the rest of the $300 million by the end of the year, Chief Financial Officer Kim Brady said on Nikola’s Q2 earnings call last Tuesday.
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