Former Nikola Chief Executive Officer CEO Trevor Milton has been sentenced to four years in prison for securities fraud by Judge Edgardo Ramo of the U.S. District Court in Manhattan.
The sentencing, marked by four delays, included a penalty of $1 million.
Mr Milton, convicted on one count of securities fraud and two counts of wire fraud in October 2022, inflated Nikola’s stock by making false claims about the electric truck company’s development.
Prosecutors sought an 11-year prison term and a $5 million fine, while Milton could have faced up to 60 years.
The defense argued Milton had no intention to defraud, maintaining his misstatements were rooted in optimism.
Mr Milton, who plans to appeal, claimed he stepped down as CEO to support his wife amid a serious illness.
The case mirrors other high-profile tech founder legal battles, such as Elizabeth Holmes and Sam Bankman-Fried.