Trevor Milton

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Trevor Milton
Trevor Milton.jpg
Trevor Milton in 2017
Born (1982-04-06) April 6, 1982 (age 39)
Layton, Utah, U.S.[1]
Alma materUtah Valley State College (dropped out)
OccupationBusinessman
Known forFounder of Nikola Corporation
TitleFormer chairman, Nikola Corporation
TermJune–August 2020
Spouse(s)
Chelsey Bergmann
​
(m. 2018)​

Trevor Milton (born April 6, 1982) is an American billionaire and the founder and former CEO and executive chairman of Nikola Corporation. In September 2020, Milton resigned from his position as chairman after the U.S. Securities and Exchange Commission and Department of Justice began investigating claims that Milton and Nikola committed securities fraud.[3][4] In July 2021, Milton was indicted by federal prosecutors on three counts of fraud and released on $100 million bail.[5][6][7]

Early life and education[]

Milton was born in Layton, Utah to Bill Milton, a Union Pacific Railroad manager, and Sally Milton, a realtor. He has a brother and three sisters. The family moved to Las Vegas when Milton was a toddler, but returned to Utah when he was eight. When he was 15 years old, his mother passed away from cancer.[8]

Milton is a member of the Church of Jesus Christ of Latter-day Saints (LDS) and, after high school, went on an 18-month church mission to Brazil.[8] Milton ended the volunteer church mission early since Mormon men serve standard 24-month missions. He dropped out of college after one semester at Utah Valley State College to pursue a career in sales and marketing.[8]

Career[]

Milton started an alarm sales company called St. George Security and Alarm immediately after quitting college and eventually exited the business for a stated $300,000, though his former business partner claims he was led to believe the exit payment was "much smaller."[9] Milton then launched an online classified ads website selling used cars, which eventually failed.

Afterwards, Milton founded an alternative energy vehicle company called dHybrid, Inc. which retrofitted commercial trucks with engines that could run on natural gas instead of diesel. After entering into a deal with an investor for a large stake in dHybrid, Milton claims that "the investor was taking our intellectual property". As a result, claimed Milton, dHybrid Inc. sued that investor and closed the company.[10] Milton then started dHybrid Systems, which was similar to the previous company except with a greater focus on building natural gas and hydrogen storage systems.[10] According to Milton, dHybrid was purchased by Worthington Industries.[11]

In 2015, Milton founded Nikola Motor Company along with his brother, Travis, as the director of operations, with an initial investment of $2 million from Worthington.[10][12] Trevor was the CEO in Nikola's early years.[13] In June 2020, as part of a reverse merger with VectoIQ in order to have Nikola go public, Milton became executive chairman of the board and turned over the CEO role to President Mark Russell.[14]

Fraud allegations[]

Hindenburg Research report[]

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 over the course of many years and characterizing Nikola Motor Company as "an intricate fraud."[9] Nikola's stock fell by eight percent that day and fell an additional 15 percent the following day, after Milton failed to deliver his rebuttal as he previously promised on Twitter.[15][16][17] Further verification by Bloomberg and the Financial Times confirmed some of the details in the report.[18][19]

As of September 10, 2020, Nikola Motor Company is being sued by at least one law firm representing shareholders for possible fraud.[20]

Federal investigations[]

On September 14, 2020, the Wall Street Journal and others reported that the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) had started an investigation into potential securities fraud committed by Milton and Nikola.[21][22][23]

Resignation from Nikola Corporation[]

On September 20, 2020, Milton resigned from his position as Executive Chairman of Nikola Corporation, just weeks after tweeting that "cowards run, leaders stay and fight".[3][24][25][26] As part of his exit package, Milton remained an unpaid consultant to Nikola until December 2020.[27] He was not allowed to comment about Nikola on social media, online blogs, or any other internet platforms without permission from the company.[27] Milton retained 91.6 million shares of Nikola that were worth roughly $3.1 billion in late September 2020.[27]

Hoax claim of arrest[]

On September 22, 2020, a rumor appeared on a Twitter satire account claiming Milton had been arrested by the Federal Bureau of Investigation and DOJ at Sky Harbor Airport in Phoenix, Arizona.[28] The tweet was picked up by Techcrunch and other major outlets; hours later, it was revealed as a hoax, and Techcrunch publicly apologized.[28][29] Following the public attention, Milton deactivated his Twitter and Instagram accounts.[30][31]

Fraud charges, actual arrest and release[]

In July 2021, a United States federal grand jury returned an indictment against Trevor Milton that included three counts of criminal fraud, including "lying about 'nearly all aspects of the business'" and two counts of securities fraud.[32][33][34] He also faces civil securities fraud charges from the SEC.[33][34] He was arrested by federal prosecutors in New York.[5][33][34] Milton pled not guilty to the charges and was freed on $100 million bail.[35]

Sexual misconduct allegations[]

In September 2020, Aubrey Ferrin Smith, Milton's cousin, accused him of sexually assaulting her at their grandfather’s funeral in 1999, when she was 15 and he was 18.[36] The Wall Street Journal later confirmed several details of the accusation, including that Smith was, indeed, Milton's cousin and that Smith had told family members about the incident months after it had occurred. Family members also told the Wall Street Journal that religious authorities were notified, but no charges were filed.[37][38][39][40] CNBC later confirmed that Smith had filed a formal complaint with the local police in Holladay, Utah where the alleged assault took place. A sergeant with the Unified Police Department confirmed that the complaint had been filled. CNBC additionally confirmed that in 2017 when the #MeToo movement was taking place, Smith published an account of the assault on Facebook without identifying Milton by name.[41]

On September 28, 2020, CNBC reported that a second anonymous woman had come forward claiming that she had been assaulted by Milton. The alleged incident is said to have occurred in 2004 when the alleged victim was 15 and Milton was 22. The alleged assault, which constitutes rape and forced sexual assault under Utah law, is being investigated by the local police. Milton reportedly bragged to a friend that he "took her virginity in the theater room." and reportedly said "I like young girls and I like virgins because they are naïve."[42][41]

Milton has denied the allegations, saying through a spokesperson, “At no point in his life has Mr. Milton ever engaged in any inappropriate physical contact with anyone."[43] On October 5, 2020, Milton sued Utah businessman David Bateman in Utah Federal District Court for defamation per se for publishing allegations against Milton, including that he was involved in sex trafficking and has assaulted numerous unnamed women.[44]

Personal life[]

Milton lives in Phoenix, Arizona with his wife, Chelsey Bergmann, whom he married in 2018.[45][2] 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.[46] The purchase price set a new record for a home in the state.[47]

In September 2020, Forbes assessed Milton's net worth to be at least $3.1 billion, as he owned about 25% of Nikola, which was valued at about $12.4 billion[48] at the time. As of July 2021 the company is valued at $5 billion.[49] As of April 6, 2021, Forbes estimated his net worth to be $1.4 billion.[50]

References[]

  1. ^ Wiles, Russ (October 4, 2020). "Nikola founder Trevor Milton made a splash in Arizona before abruptly leaving the company. What happens next?". AZCentral. The Arizona Republic. Retrieved July 29, 2021.
  2. ^ Jump up to: a b "Forbes profile: Trevor Milton". Forbes. Archived from the original on July 27, 2020. Retrieved September 11, 2020.
  3. ^ Jump up to: a b "Nikola founder Trevor Milton to voluntarily step down as executive chairman; stock plunges". CNBC. September 21, 2020.
  4. ^ 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. ISSN 0362-4331. Retrieved January 23, 2021.
  5. ^ Jump up to: a b Ramey, Corinne (July 29, 2021). "Nikola Founder Trevor Milton Charged With Lying to Investors". Wall Street Journal. ISSN 0099-9660. Retrieved July 29, 2021.
  6. ^ "Former Nikola Corporation CEO Trevor Milton Charged In Securities Fraud Scheme". www.justice.gov. July 29, 2021. Retrieved July 29, 2021.
  7. ^ Wayland, Michael (July 29, 2021). "Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $100 million bail". CNBC. Retrieved August 2, 2021.
  8. ^ Jump up to: 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.
  9. ^ Jump up to: a b "Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America". Hindenburg Research. September 10, 2020. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  10. ^ Jump up to: a b c "Nikola Motor Founder Lost Everything Twice, Then Started Company Now Worth Billions". Forbes. May 18, 2020.
  11. ^ "'Trillion-Dollar Company'? Q&A with Nikola Motor Founder Trevor Milton". Trucks.com. February 18, 2019. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  12. ^ "Early Nikola Investor Worthington Posts Gain on Share Sale". Bloomberg. September 23, 2020.
  13. ^ Hsu, Tiffany (December 2, 2016). "Nikola CEO Milton Explains Hydrogen Fuel Cell Truck Strategy". Trucks.com. Retrieved August 1, 2021.
  14. ^ Ohnsman, Alan (June 12, 2020). "Nikola Stock Surge Turns CEO Mark Russell Into Hydrogen Truckmaker's Second Billionaire". Forbes. Retrieved August 1, 2021.
  15. ^ "Nikola shares fall after short seller claims business is an 'intricate fraud'". amp.ft.com. Archived from the original on September 11, 2020.
  16. ^ Linnane, Ciara. "UPDATE: Short seller Hindenburg alleges that electric truck maker Nikola is an 'intricate fraud' in new report". MarketWatch. Archived from the original on September 11, 2020. Retrieved September 11, 2020.
  17. ^ "Short-seller accuses GM-backed Nikola Motors of being 'intricate fraud' | Fox Business". www.foxbusiness.com. Archived from the original on September 10, 2020. Retrieved September 11, 2020.
  18. ^ "Nikola's History of Discrepancies Has Been in Plain Sight". Bloomberg. Archived from the original on September 12, 2020. Retrieved September 13, 2020.
  19. ^ "Nikola shares fall after short seller claims business is an 'intricate fraud'". Financial Times. Archived from the original on September 13, 2020. Retrieved September 14, 2020.
  20. ^ "INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Nikola Corporation and Encourages Investors with Losses of $100,000 to Contact the Firm". www.businesswire.com. September 10, 2020. Archived from the original on September 14, 2020. Retrieved September 14, 2020.
  21. ^ Foldy, Ben (September 15, 2020). "Justice Department Probes Electric-Truck Startup Nikola Over Claims It Misled Investors". Wall Street Journal. ISSN 0099-9660. Archived from the original on September 15, 2020. Retrieved September 15, 2020.
  22. ^ Business, Charles Riley and Peter Valdes-Dapena, CNN. "Nikola founder Trevor Milton steps down as chairman in battle with short seller". CNN. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  23. ^ Bushey, Claire (September 15, 2020). "US justice department inquires into Nikola fraud claims". Financial Times. Peter Campbell, Kadhim Shubber. Archived from the original on September 24, 2020.
  24. ^ "Nikola Board of Directors Announces Leadership Transition". finance.yahoo.com. Archived from the original on September 21, 2020. Retrieved September 21, 2020.
  25. ^ Ohnsman, Alan. "Nikola Founder Trevor Milton Resigns After Short-Seller's Fraud Accusations". Forbes. Archived from the original on September 22, 2020. Retrieved September 21, 2020.
  26. ^ 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. ISSN 0362-4331. Archived from the original on September 23, 2020. Retrieved September 24, 2020.
  27. ^ Jump up to: a b c Kopecki, Dawn; Wayland, Michael. "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.
  28. ^ Jump up to: a b Burns, Matt (September 21, 2020). "Nikola's chairman steps down, stock crashes following allegations of fraud". TechCrunch. Retrieved August 1, 2021.
  29. ^ Iqbal, Saman (September 21, 2020). "Nikola founder Trevor Milton not arrested by DOJ, FBI [UPDATE]". Insider Paper. Retrieved August 1, 2021.
  30. ^ Burns, Matt (September 21, 2020). "Nikola's chairman steps down, stock crashes following allegations of fraud". TechCrunch. Archived from the original on September 25, 2020. Retrieved September 24, 2020.
  31. ^ Vega, Nicolas (September 22, 2020). "Nikola founder Trevor Milton deletes Twitter account amid fraud claims". New York Post. Archived from the original on September 30, 2020. Retrieved September 24, 2020.
  32. ^ 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.
  33. ^ Jump up to: a b c Wayland, Michael (July 29, 2021). "U.S. prosecutors charge Trevor Milton, founder of electric carmaker Nikola, with three counts of fraud". CNBC. Retrieved July 29, 2021.
  34. ^ Jump up to: a b c Goldstein, Matthew; Chokshi, Niraj (July 29, 2021). "Nikola Founder Is Charged With Fraud in Rebuke to Wall Street". The New York Times. ISSN 0362-4331. Retrieved August 1, 2021.
  35. ^ Wayland, Michael (July 29, 2021). "Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $100 million bail". CNBC. Retrieved August 1, 2021.
  36. ^ "https://twitter.com/aubreyfsmith/status/1308038927878623233". Twitter. Archived from the original on September 22, 2020. Retrieved September 22, 2020. External link in |title= (help)
  37. ^ Boston, Ben Foldy and William (September 21, 2020). "Nikola Founder Trevor Milton Resigns as Executive Chairman Amid Fraud Allegations". Wall Street Journal. ISSN 0099-9660. Archived from the original on September 22, 2020. Retrieved September 22, 2020.
  38. ^ "Sexual Assault Accusations Drive Ex-Nikola CEO To Delete Twitter Account A Day After Resigning". Jalopnik. Archived from the original on September 24, 2020. Retrieved September 24, 2020.
  39. ^ Medina, Julissa (September 23, 2020). "Is Nikola's stock price dropping due to #MeToo claims?". Film Daily. Retrieved September 24, 2020.
  40. ^ Kelly, Jack. "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.
  41. ^ Jump up to: a b Wayland, Dawn Kopecki,Michael (September 29, 2020). "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. Archived from the original on September 29, 2020. Retrieved September 29, 2020.
  42. ^ Sonnemaker, Tyler. "A 2nd woman has reportedly accused Nikola Motors founder Trevor Milton of sexual assault". Business Insider. Archived from the original on September 29, 2020. Retrieved September 29, 2020.
  43. ^ Wayland, Dawn Kopecki,Michael (September 29, 2020). "Two women file sexual abuse complaints against Nikola founder Trevor Milton". CNBC. Retrieved January 15, 2021.
  44. ^ "Nikola founder Trevor Milton sues Utah businessman for defamation over tweets about treatment of women". CNBC. October 7, 2020.
  45. ^ Laviola, Erin (September 21, 2020). "Trevor Milton's Wife & Family: 5 Fast Facts You Need to Know". Heavy.com. Archived from the original on September 22, 2020. Retrieved September 24, 2020.
  46. ^ 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.
  47. ^ Clarke, Katherine. "Nikola Motor Chief Sets Utah Real Estate Record With $32.5 Million Buy". www.mansionglobal.com. Archived from the original on September 23, 2020. Retrieved September 21, 2020.
  48. ^ 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.
  49. ^ "Nikola founder indicted for misleading investors". Automotive News. July 29, 2021. Retrieved July 31, 2021.
  50. ^ "Trevor Milton". Forbes. Retrieved August 1, 2021.

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