Trevor Milton Pardoned by President Trump Following Fraud Conviction
Trevor Milton, the founder of the electric vehicle startup Nikola, received a pardon from President Trump, as confirmed by the White House on Friday. This decision comes after Milton was sentenced to four years in prison for fraud, stemming from claims he made regarding his company’s technology.
Pardon Implications
The pardon may significantly affect the financial landscape for Milton, potentially eliminating hundreds of millions of dollars in restitution that prosecutors anticipated for defrauded investors. His conviction was rooted in accusations of inflating the capabilities of Nikola’s technology, with prosecutors indicating that he misled investors about a prototype truck’s functionality.
Background on the Case
During his trial, evidence presented included a video of a Nikola truck that appeared to drive along a highway. Prosecutors claimed that the footage actually depicted a non-operational vehicle being rolled down a hill. Milton maintained his innocence during the proceedings and had been out of prison pending his appeal when the pardon was issued.
Political Contributions and Support
Shortly before the 2020 presidential election, Milton and his wife contributed over $1.8 million to Trump’s reelection campaign, as noted in records from the Federal Election Commission. In a statement after the pardon, Milton expressed gratitude to Trump, asserting, “I am incredibly grateful to President Trump for his courage in standing up for what is right and for granting me this sacred pardon of innocence.”
Trump’s Justification
In a press conference, when asked about the reasoning behind the pardon, Trump stated it was based on recommendations from several individuals and suggested that Milton’s prosecution was politically motivated due to his support for the former president. Trump described Milton as a victim of prosecutorial overreach by the Southern District of New York.
Connections to Trump’s Legal Counsel
Milton’s legal defense team included Marc Mukasey and Brad Bondi, both of whom have ties to Trump. Mukasey has previously represented the Trump Organization, while Bondi’s sister was appointed as Attorney General by Trump.
Nikola’s Decline and Legal Troubles
The once-promising Nikola faced significant challenges, filing for Chapter 11 bankruptcy protection in February. Following Milton’s resignation amid fraud allegations in 2020, the company saw a dramatic decline in stock prices, which affected numerous investors following claims that the company had produced zero-emission trucks.
In 2021, Nikola settled a civil case with the Securities and Exchange Commission for $125 million, without admitting guilt. U.S. Attorney Damian Williams previously characterized Milton’s repeated misrepresentations as a severe offense, issuing a stark warning to corporate executives about the consequences of misleading investors.
Conclusion
The U.S. District Attorney’s Office for the Southern District of New York has refrained from commenting on Milton’s pardon, marking a significant development in a case that has drawn considerable public attention. As the fallout from this settlement continues, the implications of Milton’s pardon and the fate of Nikola remain to be seen.
