Trevor Milton, the founder of electric vehicle start-up Nikola who was sentenced to prison last year, was pardoned by President Donald Trump late Thursday, the White House confirmed Friday.
The pardon of Milton, who was sentenced to four years in prison for exaggerating the potential of his technology, could wipe out hundreds of millions of dollars in restitution that prosecutors were seeking for defrauded investors.
At Milton's trial, prosecutors say a company video of a prototype truck appearing to be driven down a desert highway was actually a video of a nonfunctioning Nikola that had been rolled down a hill.
Milton had not been incarcerated pending an appeal.
Milton said late Thursday on social media and via a press release that he had been pardoned by Trump.
"I am incredibly grateful to President Trump for his courage in standing up for what is right and for granting me this sacred pardon of innocence," Milton said.
The White House confirmed the pardon Friday, though there was no notice of a pardon on the White House website.
Nikola, which was a hot start-up and rising star on Wall Street before becoming enmeshed in Milton's scandal, filed for Chapter 11 bankruptcy protection in February. That filing came months after the company said it would likely run out of cash early this year.
Milton was convicted of fraud, portrayed by prosecutors as a con man six years after he had founded the company in a basement in Utah.
Prosecutors said Milton falsely claimed to have built its own revolutionary truck that was actually a General Motors product with Nikola's logo stamped onto it.
Called as a government witness, Nikola's CEO testified that Milton "was prone to exaggeration" when pitching his venture to investors.
Milton resigned in 2020 amid reports of fraud that sent Nikola's stock prices into a tailspin. Investors suffered heavy losses as reports questioned Milton's claims that the company had already produced zero-emission 18-wheel trucks.
The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola didn't admit any wrongdoing.
