Nikola is one of at least three EV start-up companies being investigated by federal prosecutors about potentially misleading investors.
Officials involved in the probe allege Milton abused the SPAC process by using social media and other mediums to continually spew lies and misleading information about the company directly to retail investors.
They said Milton was obsessed with retail investors and their role in keeping Nikola's stock price up. That included tracking the amount of users of"In carrying out his fraudulent scheme, Milton exploited features of the SPAC structure that are different from a traditional initial public offering or IPO," U.S. Attorney Audrey Strauss said.
Defense attorney Brad Bondi said in an email Thursday that Milton was "wrongfully accused following a faulty and incompetent investigation," and that justice won't be served until he's exonerated.The warnings to SPACs follow increased scrutiny by the SEC into such companies, which last year emerged as an increasingly popular way for businesses to go public.
Strauss said SPACs differ from traditional IPOs in that they aren't subject to a quiet period before public trading begins. That allowed Milton to freely speak about the company on social media throughout the process of going public through a reverse merger with VectoIQ in June 2020, she said. "During that period, Milton brazenly and repeatedly made false and misleading claims about the status of Nikola's technology," Strauss said. "Milton told lies to generate popular demand for Nikola's stock."
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Nikola Founder’s Bombshell Fraud Charges May Hold Warning For Tesla’s Elon MuskThe SEC, which has tangled several times with Musk, suggests it's keeping a closer eye on executives' comments on social media about their companies.
Leer más »
Allianz cooperating as DOJ probes Structured Alpha FundsThe U.S. Department of Justice has begun an investigation relating to Allianz Global Investors' Structured Alpha Funds, following litigation pending in U.S. courts on the matter, German insurer Allianz (ALVG.DE) said on Sunday.
Leer más »
Nikola Founder’s Bombshell Fraud Charges May Hold Warning For Tesla’s Elon MuskThe SEC, which has tangled several times with Musk, suggests it's keeping a closer eye on executives' comments on social media about their companies.
Leer más »
Kris Wu Arrested on Suspicion of RapeThe former face of Louis Vuitton, Porsche, and Bulgari, may face criminal charges and deportation.
Leer más »
A Trump supporter was arrested after a church prayer group member sent texts to the FBI that showed him inside the Capitol Building on Jan. 6Glenn Allen Brooks texted selfies of himself inside the Capitol to a church prayer chat group, according to a DOJ criminal complaint.
Leer más »
Second Victim in “Random” California Theater Shooting DiesCharges will be amended against suspect Joseph Jimenez.
Leer más »