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Trevor Milton

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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)​

Trevor Robert Milton (born April 6, 1982) is an American entrepreneur, founder, and former executive chairman of Nikola Corporation, a company focused on developing hydrogen and electric-powered commercial vehicles.

In September 2020, Milton resigned as executive chairman following investigations by the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) into allegations of securities fraud.[2][3] In 2022, he was found guilty charges of securities and wire fraud, resulting in a four-year prison sentence and a $1 million fine.[4][5]

Early life and education

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Milton was born in Layton, Utah to William L. Milton, a manager with Union Pacific Railroad, and Sallie Gwyn Hunt Milton, a realtor. He has one brother and three sisters. The family moved to Las Vegas when Milton was a toddler and later relocated to Kanab, Utah when he was eight. His mother died from cancer when he was 15 years old.[6][7]

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.[6][7] He dropped out of college after one semester at Utah Valley University and then moved to the city of St. George, Utah.[7][8]

Career

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Milton started an alarm sales company called St. George Security and Alarm after leaving college.[9] He eventually exited the business and founded an alternative energy vehicle company called dHybrid, Inc. which retrofitted commercial trucks with engines that could run on natural gas instead of diesel. Disputes with investors eventually led to the dissolution of dHybrid, after which Milton launched dHybrid Systems in 2012.[10] This company focused on natural gas storage systems for heavy-duty trucks and was later acquired by Worthington Industries.[11]

Nikola Corporation

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In 2015, Milton founded Nikola Motor Company in Salt Lake City, Utah, initially known as Bluegentech,[12] with an initial investment of $2 million from Worthington Industries.[13][10][14] Inspired by Nikola Tesla, Milton aimed to revolutionize the commercial trucking industry by developing hydrogen-electric and battery-electric semi-trucks to provide sustainable and zero-emission alternatives to traditional diesel-powered vehicles.[15] The company was rebranded as Nikola Motor Company to reflect this vision and Milton served as the CEO in Nikola's early years.[16] Nikola introduced several prototype models, including the Nikola One, a hydrogen-electric semi-truck designed for long-haul transportation.[17] The company later expanded its lineup to include models such as the Nikola Two, targeted at regional transport,[18] and the Nikola Tre, developed in collaboration with European partner Iveco to cater to the European market.[19][20] In addition to vehicle development, Milton led a plan to establish a nationwide network of hydrogen fuelling stations in collaboration with Nel Hydrogen.[21][22]

In 2020, Nikola went public through a reverse merger with VectoIQ, a special purpose acquisition company (SPAC), achieving a valuation of approximately $12 billion. Following the merger, Milton became executive chairman of the board and turned over the CEO role to Mark Russell.[23] By June 2020, the shares had more than doubled in selling price since they began trading, as investors continued to bet on the growth potential of electric transportation.[24] On September 8, 2020, Nikola and General Motors announced a partnership, which led to an significant increase in the company’s stock price.[25]

Allegations and trial

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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 and calling the company "an intricate fraud."[9] Following the report, Nikola’s stock price fell, and the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) launched investigations into securities fraud allegations involving Milton.[26][27][28]

On September 20, 2020, Milton resigned from his position as executive chairman of Nikola Corporation.[2][29][30][31] As part of his exit package, he remained an unpaid consultant to Nikola until December 2020[32] and was restricted from publicly commenting on Nikola without prior approval.[32] Milton retained 91.6 million shares of Nikola, valued at approximately $3.1 billion in late September 2020.[32]

In September 2020, allegations of sexual misconduct against Milton were reported by media outlets, including CNBC and The Wall Street Journal.[33][34] These claims, spanning incidents from 1999 and 2004, did not result in legal charges due to the statute of limitations.[35][36] Milton has denied all allegations, describing them as unfounded and defamatory.[37] The accusations coincided with ongoing scrutiny surrounding his tenure at Nikola Corporation.[34]

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] Milton pleaded not guilty to the charges and was freed on $100 million bail.[41] In June 2022, Milton was charged with an additional wire fraud charge.[42] In October 2022, he was found guilty on one count of securities fraud and two counts of wire fraud[43] and sentenced to four years in prison, $168 million in restitution, and a $1 million fine.[44][45][46] It is expected Milton will, after credits earned through the First Step Act and other Bureau of Prisons programming, only serve approximately one year in federal prison.[47]

Personal life

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Milton lives in Phoenix, Arizona with his wife, Chelsey Bergmann, whom he married in 2017.[48][49] 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.[50] The purchase price set a new record for a home in the state.[51] He is friends with Dave "Heavy D" Sparks.[52][53]

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 at the time.[54] By June 2023, the total market capitalization of Nikola had dropped to under $400 million.

References

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  1. ^ Wiles, Russ (October 4, 2020). "Nikola founder Trevor Milton made a splash in Arizona before abruptly leaving the company. What happens next?". The Arizona Republic. Archived from the original on December 20, 2023. Retrieved July 29, 2021.
  2. ^ a b Wang, Christine; Steinberg, Marty (September 21, 2020). "Nikola founder Trevor Milton to voluntarily step down as executive chairman; stock plunges". CNBC. Archived from the original on December 31, 2023. Retrieved July 14, 2024.
  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. Archived from the original on July 3, 2024. Retrieved January 23, 2021.
  4. ^ Rosevear, John (October 14, 2022). "Nikola founder Trevor Milton found guilty of fraud over statements he made while CEO of the EV company". CNBC. Archived from the original on December 24, 2023. Retrieved October 14, 2022.
  5. ^ Wayland, Michael; Mangan, Dan (December 18, 2023). "Nikola founder Trevor Milton sentenced to four years in prison for fraud". CNBC. Archived from the original on July 5, 2024. Retrieved January 5, 2024.
  6. ^ 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. Archived from the original on March 23, 2023. Retrieved April 6, 2024.
  7. ^ 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.
  8. ^ Bushey, Claire; Aliaj, Ortenca; Campbell, Peter (December 6, 2020). "Nikola: the clues in Trevor Milton's past that investors missed or ignored". Financial Times. Retrieved December 2, 2024.
  9. ^ a b Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America (Report). Hindenburg Research. September 10, 2020. Archived from the original on September 10, 2020. Retrieved September 11, 2020. Our Conclusion: Nikola is a Massive Fraud Constructed on Dozens of Lies
  10. ^ a b Li, Steven (May 18, 2020). "Nikola Motor Founder Lost Everything Twice, Then Started Company Now Worth Billions". Forbes. Archived from the original on November 21, 2023. Retrieved July 14, 2024.
  11. ^ O'Dell, John (February 18, 2019). "'Trillion-Dollar Company'? Q&A with Nikola Motor Founder Trevor Milton". trucks.com. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  12. ^ https://www.sec.gov/files/litigation/admin/2021/33-11018.pdf
  13. ^ McCandless, James (July 30, 2021). "Quick History of Nikola Motor Company, the Embattled Hydrogen and Electric Vehicle Startup". Newsweek. Archived from the original on July 30, 2021. Retrieved July 14, 2024.
  14. ^ Dawson, Chester (September 23, 2020). "Early Nikola Investor Worthington Posts Gain on Share Sale". Bloomberg News. Retrieved July 14, 2024.
  15. ^ "Elon Musk Isn't the Only Electric Futurist Who Wants to Rectify Nikola Tesla's Legacy". Observer. November 23, 2019. Retrieved December 20, 2024.
  16. ^ Hsu, Tiffany (December 2, 2016). "Nikola CEO Milton Explains Hydrogen Fuel Cell Truck Strategy". trucks.com. Archived from the original on December 20, 2016. Retrieved August 1, 2021.
  17. ^ "Nikola Hydrogen-Electric Big Rig: A Glimpse of Long-Haul Trucking for the 2020s?". Car and Driver. December 14, 2016. Retrieved December 2, 2024.
  18. ^ "Nikola hydrogen-electric semi comes to life for Anheuser-Busch". CNET. Retrieved December 20, 2024.
  19. ^ Bomey, Nathan. "Truck startup and Tesla rival Nikola announces plans for electric pickup: Meet the Nikola Badger". USA TODAY. Retrieved December 2, 2024.
  20. ^ "EV maker Nikola jumps on securing supplies to meet 2022 delivery target". Reuters. Archived from the original on September 9, 2023. Retrieved December 20, 2024.
  21. ^ "How Nikola Motor Company Drives Its Zero-Emissions Innovations Forward with SAP". ASUG. March 16, 2019. Retrieved December 20, 2024.
  22. ^ Adler, Alan (October 20, 2022). "Nikola plans 60 hydrogen stations by 2026". FreightWaves. Retrieved December 20, 2024.
  23. ^ Ohnsman, Alan (June 12, 2020). "Nikola Stock Surge Turns CEO Mark Russell Into Hydrogen Truckmaker's Second Billionaire". Forbes. Archived from the original on November 21, 2023. Retrieved August 1, 2021.
  24. ^ "Nikola Badger reservations open as CEO takes veiled jab at Tesla". CNET. Retrieved December 20, 2024.
  25. ^ Waters, Richard (September 11, 2020). "Nikola founder Trevor Milton insists vehicle start-up is roadworthy". Financial Times. Retrieved December 20, 2024.
  26. ^ Foldy, Ben (September 15, 2020). "Justice Department Probes Electric-Truck Startup Nikola Over Claims It Misled Investors". The Wall Street Journal. Retrieved September 15, 2020.
  27. ^ Riley, Charles; Valdes-Dapena, Peter (September 21, 2020). "Nikola founder Trevor Milton steps down as chairman in battle with short seller". CNN Business. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  28. ^ Bushey, Claire; Campbell, Peter; Shubber, Kadhim (September 15, 2020). "US justice department inquires into Nikola fraud claims". Financial Times.
  29. ^ "Nikola Board of Directors Announces Leadership Transition". finance.yahoo.com. Archived from the original on September 21, 2020. Retrieved September 21, 2020.
  30. ^ Ohnsman, Alan (September 21, 2020). "Nikola Founder Trevor Milton Resigns After Short-Seller's Fraud Accusations". Forbes. Archived from the original on September 22, 2020. Retrieved September 21, 2020.
  31. ^ 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. Archived from the original on September 23, 2020. Retrieved September 24, 2020.
  32. ^ 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.
  33. ^ Kopecki, Dawn; Wayland, Michael (September 30, 2020) [2020-09-28]. "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. Archived from the original on September 29, 2020. Retrieved September 29, 2020.
  34. ^ a b Foldy, Ben; Boston, William (September 21, 2020). "Nikola Founder Trevor Milton Resigns as Executive Chairman Amid Fraud Allegations". The Wall Street Journal. Retrieved July 14, 2024.
  35. ^ Heberts, Adam (November 21, 2022). "FOX 13 Investigates: Utah AG did not investigate billionaire, future campaign donor for sex assault". KTSU. Archived from the original on December 20, 2023.
  36. ^ Kelly, Jack (September 22, 2020). "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.
  37. ^ O'Brien, Sara Ashley (September 29, 2020). "Former Nikola chairman Trevor Milton accused of sexual assault, complaints allege | CNN Business". CNN. Retrieved November 15, 2024.
  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. ^ Wayland, Michael (July 29, 2021). "U.S. prosecutors charge Trevor Milton, founder of electric carmaker Nikola, with three counts of fraud". CNBC. Archived from the original on March 8, 2024. Retrieved July 29, 2021.
  40. ^ Goldstein, Matthew; Chokshi, Niraj (July 29, 2021). "Nikola Founder Is Charged With Fraud in Rebuke to Wall Street". The New York Times. Archived from the original on February 25, 2024. Retrieved August 1, 2021.
  41. ^ Wayland, Michael (July 29, 2021). "Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $100 million bail". CNBC. Archived from the original on October 4, 2023. Retrieved August 1, 2021.
  42. ^ Rosevear, John; Wayland, Michael (June 22, 2022). "Nikola founder Trevor Milton faces new federal fraud charge tied to ranch purchase". CNBC. Archived from the original on October 2, 2023. Retrieved October 6, 2022.
  43. ^ Rosevear, John (October 14, 2022). "Nikola founder Trevor Milton found guilty of fraud over statements he made while CEO of the EV company". CNBC. Archived from the original on December 24, 2023. Retrieved October 14, 2022.
  44. ^ Herbets, Adam (November 28, 2023). "Sentencing of Utah billionaire Trevor Milton delayed again". KSTU. Archived from the original on December 2, 2023. Retrieved November 29, 2023.
  45. ^ Ramey, Corinne; Foldy, Ben (September 18, 2023). "Trevor Milton Gets Four Years in Prison for Deceptions on Zero-Emission Trucks". The Wall Street Journal. Retrieved July 14, 2024.
  46. ^ {{cite news |title=Convicted Nikola founder Milton owes electric truck maker $168 million, judge rules |first=Jonathan |last=Stempel |work=Reuters |date=2024-09-10 |url=https://www.reuters.com/legal/convicted-nikola-founder-milton-owes-electric-truck-maker-168-million-judge-2024-09-10/https://www.reuters.com/legal/convicted-nikola-founder-milton-owes-electric-truck-maker-168-million-judge-2024-09-10/ |access-date=2024-12-31
  47. ^ "How Much Time Will Trevor Milton Serve In Prison?". September 4, 2024. Retrieved September 4, 2024.
  48. ^ Laviola, Erin (September 21, 2020). "Trevor Milton's Wife & Family: 5 Fast Facts You Need to Know". Heavy. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  49. ^ "Forbes profile: Trevor Milton". Forbes. Archived from the original on July 27, 2020. Retrieved September 11, 2020.
  50. ^ 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.
  51. ^ Clarke, Katherine (November 13, 2019). "Nikola Motor Chief Sets Utah Real Estate Record With $32.5 Million Buy". The Wall Street Journal. Archived from the original on September 23, 2020. Retrieved September 21, 2020 – via mansionglobal.com.
  52. ^ O'Kane, Sean (February 22, 2024). "Nikola sells abandoned electric Badger pickup truck program to friend of disgraced founder Trevor Milton". TechCrunch. Archived from the original on February 22, 2024. Retrieved April 13, 2024.
  53. ^ Bell, Sebastien (February 9, 2024). "Sparks Fly After Disgraced Founder Picks 'Diesel Brothers' Star For Nikola Board". carscoops.com. Archived from the original on February 9, 2024. Retrieved April 13, 2024.
  54. ^ 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.
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