Trevor Milton, the founder of electric vehicle start-up Nikola who was sentenced to prison last year, was pardoned by President Donald Trump, 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.
Milton and his wife donated more than $1.8 million to a Trump re-election campaign fund less than a month before the November election, according to the Federal Election Commission.
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 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.
Trump wasted little time in using his pardon power since beginning his second term. Hours after taking office, he wiped clean the records of roughly 1,500 people who participated in the Jan. 6, 2021, riot at the U.S. Capitol. The next day, Trump announced that he had pardoned Ross Ulbricht, the founder of Silk Road, an underground website for selling drugs.
Ulbricht had been sentenced to life in prison in 2015 after a high-profile prosecution that highlighted the role of the internet in illegal markets.
Nikola, which was a hot start-up and rising star on Wall Street before becoming enmeshed in scandal, filed for Chapter 11 bankruptcy protection in February.
Milton, convicted of fraud, was 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.
A voicemail left with the U.S. District Attorney’s Office for the Southern District of New York, which prosecuted the case, was not immediately returned.
At the time of his conviction U.S. Attorney Damian Williams said, “Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print. But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”