NEW YORK — Trevor Milton, the founder of electrical truck maker Nikola Corp., has been indicted on costs of constructing false and deceptive statements to traders, the U.S. Division of Justice stated on Thursday.

The indictment stated that, from November 2019 to September 2020, Milton schemed to defraud traders into shopping for Nikola shares by way of statements concerning the firm’s product and expertise improvement.

Milton resigned in September 2020.

The corporate launched a press release in response to the indictment:

“Trevor Milton resigned from Nikola on September 20, 2020, and has not been concerned within the firm’s operations or communications since that point. Right now’s authorities actions are in opposition to Mr. Milton individually, and never in opposition to the corporate.

“Nikola has cooperated with the federal government all through the course of its inquiry. We stay dedicated to our beforehand introduced milestones and timelines and are centered on delivering Nikola Tre battery-electric vans later this yr from the corporate’s manufacturing services.”

Final September, Hindenburg Analysis stated in a paper that it was short-selling Nikola inventory and labeled the corporate a “fraud” — a cost it denied.

In November, Nikola stated it acquired grand jury subpoenas associated to the matter.

In February, Nikola disclosed, following a evaluation by an outdoor legislation agency, that each it and Milton had made a number of statements that had been partially or fully inaccurate.

Among the many false and deceptive statements Milton made, based on the indictment:

• That the corporate had a “totally functioning” semi-truck prototype often called the “Nikola One,” even if Milton knew that the prototype was inoperable.
• That Nikola had engineered and constructed an electric- and hydrogen-powered pickup truck often called “the Badger”  from the “floor up” utilizing Nikola’s components and expertise, which he knew was not true.
• That Nikola was producing hydrogen and was doing so at a decreased price, when “no hydrogen was being produced in any respect by Nikola, at any price.”
• That Nikola had developed batteries and different necessary parts in-house, once they had been shopping for them from third events.
• That reservations for Nikola’s semi-trucks had been binding orders representing billions in income, once they had been truly capable of be canceled at any time “and had been for a truck Nikola had no intent to supply within the near-term.”

Legal professionals for Milton didn’t instantly reply to an e mail in search of remark. Prosecutors have scheduled an 11 a.m. press convention on the matter in N.Y.

Shares in Nikola plunged 7.5 p.c in premarket buying and selling on Thursday.

Reuters, Bloomberg and Automotive Information employees contributed to this report.