Trevor Milton loses bid to move or dismiss criminal fraud case

Milton
Credit: Reuters /Eduardo Munoz

Nikola Motors founder and former CEO Trevor Milton was in a New York court on Monday in an attempt to have his criminal fraud case dismissed.

Milton’s legal team was also hoping to have the case moved out of New York to Arizona or Utah on the grounds that the alleged lies were told in those states, and not New York.

After a hearing, a judge refused to dismiss the case, which alleges Milton defrauded investors and lied about the company’s progress in building an electric semi truck.

Hindenburg Research says Nikola Motors is an ‘intricate fraud’

The judge also refused to move the case to Arizona or Utah on the grounds that Milton traded Nikola stock on the NASDAQ exchange in New York, and made false statements to the state.

Milton was also requesting the case be moved partly because of his wife. According to court documents reported by Reuters, she has an autoimmune disorder and other “severe” health issues for which Milton helps care for.

In July the US Attorney’s Office indicted the 39-year old Milton on two counts of securities fraud and one count of wire fraud.

Nikola as a company has not been accused of wrongdoing in the case.

They have however recently reserved $125 million to fund a potential settlement for another ongoing case with the U.S. Securities and Exchange Commission (SEC).

Nikola sets aside $125 million to pay SEC for Trevor Milton’s misdeeds

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca