Human beings might be the smartest species to walk the earth, but all that hasn’t really kept them from making a mistake. This dynamic, in particular, has popped up on the surface quite a few times throughout our history, with each testimony practically forcing us to look for a defensive cover. To the world’s credit, we will solve our conundrum in the most fitting way possible, and we’ll do so by bringing dedicated regulatory bodies into the fold. Having a well-defined authority across each and every area was a game-changer, as it instantly concealed our many shortcomings. However, while the utopia you would expect from such a development did arrive, it failed to stick around for long. Talk about what caused this untimely death; it was all technology’s fault. You see, the moment technology got its layered nature to take over the scene, it allowed every individual an unprecedented chance to full their ulterior motives at the expense of others’ well-being. In case that didn’t sound devastating enough, the whole runner soon began to materialize on a scale so massive that it expectantly overwhelmed our governing forces and sent them back to square one. After spending a lengthy spell in the wilderness, though, it seems like the regulatory contingent is finally ready to make a big comeback. The same has only turned more and more evident over the recent past, and a new lawsuit does a lot to take it one step further.
A federal court in New York has officially charged Nikola founder, Trevor Milton with securities fraud. As per the claims related to the case, Milton misled investors about the development status of Nikola products. Although the allegations are made on a much wider scale, the jury gave a specific mention to how, on one instance, Milton created a video where he falsely tried to portray that the, now infamous, Nikola One semi truck was capable of moving under its own power, when the vehicle was simply just rolling downhill. As if the stated act wasn’t outrageous enough, Milton also went ahead and claimed that the company was producing its own hydrogen fuels at below-market rates and had obtained “billions and billions and billions and billions” of dollars worth of committed truck orders. If you haven’t guessed it already, this one was also a blatant lie.
“Milton sold a version of Nikola not as it was – an early stage company with a novel idea to commercialize yet-to-be proven products and technology – but rather as a trail-blazing company that had already achieved many groundbreaking and game-changing milestones,” the complaint stated.
Milton’s deceptive plans of a hydrogen fuel-powered truck and tractor trailer cab even convinced General Motors to make a $2 billion acquisition offer, but before a deal could be closed, Hindenburg Research released a sensational report, which accused the company of fraud. Hence, instead of a billion-dollar acquisition, Nikola made the headlines for being embroiled in a SEC investigation. This entire hullabaloo will force Milton to resign from the company. Coming to the latest development, the former Nikola executive was found guilty on one count of securities fraud and two counts of wire fraud, and as a result, he now faces upto 20 years in prison.