Trevor Milton, the founder of Nikola Motors, an energy automotive startup, sold 11.7 million shares in two transactions that ended Tuesday that together amounted to $131 million, per regulatory filings.
The sale follows another round of disposals that Milton started in August of this year, just weeks after pleading not guilty to charges that he misled investors. Those sales were worth about $153 million and, taken together, mean that the founder has sold around $184 million worth of Nikola stock since August, reports Bloomberg.
The sales follow the launch of a criminal indictment that accuses Milton of misleading investors and making false statements regarding almost all aspects of Nikola’s business.
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Following allegations from a short-seller that Nikola was an “intricate fraud,” Milton stepped down from his position as CEO in September 2020. An investigation by the U.S. Department of Justice followed and Milton was later indicted on fraud charges.
Prosecutors allege that, among other things, when Milton tweeted to the world that the hydrogen-powered Badger pickup truck would produce potable water and its own windshield washer fluid, he had not consulted the company’s engineers. He allegedly looked up whether his claims were possible days later on the internet.
Earlier this month, Nikola revealed that it may pay the government $125 million in civil penalties for its role in the case, pending approval from SEC commissioners. At the same time, the company said that it intended to seek reimbursement from Milton “for costs and damages in connection with the government and regulatory investigations.”
“With prospects of an SEC settlement, we’re looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close and maintaining our focus on delivering trucks to our customers and building the energy, service, and support infrastructure our customers need,” said current Nikola CEO Mark Russel, at the time.
