Nikola electric vehicle group pays $ 125m to crack down on SEC fraud cases

Electric car founder Nikola has agreed to pay $ 125m to crack down on fraudulent money laundering scandals, the U.S. Security and Exchange Commission said on Tuesday.

The U.S. market manager said Trevor Milton, the company’s founder and former CEO, had exposed the technical frauds of his products. It also accused him of misleading investors in manufacturing companies, order numbers and his perception of money.

Milton resigned last year when investigative reports first surfaced accusing the company of “extremely fraudulent”, including allegations that its expertise was purchased from other companies.

Gurbir Grewal, executive director of the SEC’s security services, stated: “Nikola Corporation is responsible for what Milton called a fraudulent and fraudulent transaction, all of which exposed the company’s performance and professionalism.

“These errors – as well as the harm they caused to the retailers – should receive the strong support that is provided today.”

Nikola stated: “We are pleased to end this case because the company has terminated all government investigations. . . According to the ruling, Nikola does not accept or reject the SEC’s findings on the matter.

“The company has taken steps to recover money from its founder, Trevor Milton, for financial and other related expenses and government investigations,” it added.

Milton did not respond to a request for comment.

The announcement is a recent sign that the agency is tightening its grip on the private sector, called blank check groups that take ordinary companies together. Nikola went public through this process after joining the VectoIQ Acquisition last June.

Gary Gensler, SEC chair, he warns that such a acquisition would not give investors as much security as they would expect from human resources.

The company he said last month set aside $ 125m for settlement, which it said was expected to pay off gradually over two years. The company also added that it wants to return the money to Milton himself, who is also facing fraud charges.

The SEC trial began in July, when protesters launched a Milton case. Mu his complaint, the commission reported a number of false statements made by the former president.

It described how Milton showed potential investors at the 2016 event which he said was a fully functional car, when it did not work and its electricity was only working because it was connected to an external power source.

The SEC also cited a well-known video, in which Milton ordered a YouTube post, showing Nikola One’s car moving down the street – leaving the car on the ground because it could not be driven under it. power.

The SEC said the company had given up long-term supply of fuel for its vehicles and how much it would cost to produce the hydrogen needed to power them.