Nikola Founder Trevor Milton is about to be sentenced Monday in a New York courtroom on three costs associated to defrauding traders of the embattled electric- and hydrogen-powered truck maker.

Milton was discovered responsible in October 2022 on two counts of wire fraud and one rely of securities fraud. He faces as much as 60 years in jail. Nonetheless, prosecutors in New York final week really useful a sentence of 11 years imprisonment.

Milton grew to become an in a single day billionaire when he took Nikola public by a take care of a particular objective acquisition firm in June 2020. The corporate was rapidly thought-about to be one of many most-promising EV startups – valued at its peak at greater than $30 billion – till allegations concerning false and deceptive statements have been uncovered by short-seller Hindenburg Analysis.

Prosecutors on Tuesday in contrast Milton to disgraced Theranos founder Elizabeth Holmes, who was sentenced to greater than 11 years in jail final yr for defrauding traders in her blood testing startup.

“Simply as Holmes lied about Theranos-manufactured blood analyzers, Milton lied concerning the operability of the Nikola One semitruck,” prosecutors wrote to U.S. District Decide Edgardo Ramos, who will resolve Milton’s sentencing.

Milton has tried to differentiate himself from Holmes, whose firm was non-public. He argues “that Nikola remains to be an actual enterprise, whereas Theranos just isn’t,” in accordance with courtroom paperwork.

Milton, who was the corporate’s largest shareholder, stepped down as govt chairman of Nikola in September 2020. He did so amid an inner probe after the Hindenburg report, which characterised the corporate as a home of playing cards constructed by Milton.

Since Milton’s resignation, shares of Nikola have crated and the corporate has did not retain executives. Nikola Chairman Stephen Girsky, whose SPAC introduced the corporate public, was named CEO in August.

Shares of Nikola have just lately traded underneath $1, with a market worth of about $327 million.

Nikola was among the many first closely publicized firms to go public by a SPAC. It impressed lots of of different startups to do the identical earlier than the Securities and Alternate Fee cracked down on the observe.

SPACs are publicly traded firms that do not have any actual belongings apart from money. They’re shaped as funding automobiles with the only real objective of elevating funds after which discovering and merging with a privately held firm.

It is a growing story. Please test again for added updates.