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Trevor Milton CEO of Nikola
Massimo Pinca | Reuters
Nikola and its founder, Trevor Milton, received a grand jury summons from the Department of Justice in September in connection with fraud allegations raised by short seller Hindenburg.
The assaulted electric truck maker revealed the subpoenas in a regulatory filing late Monday.
The filing also said the company received a grand jury subpoena from the New York County District Attorney’s Office in September. Grand juries are typically involved in criminal investigations.
The Securities and Exchange Commission also issued subpoenas to Nikola, its board of directors, and eight of its officers and employees in September, the company revealed in the statement, which was prompted by the sour short seller’s report earlier. of that month.
Monday’s statement came hours after Nikola CEO Mark Russell told investors that the company was “fully cooperating” with federal investigators’ requests regarding the short-seller report.
“Nikola proactively contacted and briefed the SEC during the quarter regarding our concerns regarding a report released by a short seller,” Russell said during his third quarter earnings call. “Our board has been in close contact with the SEC and the Justice Department and we are fully cooperating with both in requesting information and documents.”
Federal investigations were first reported prior to Milton’s resignation as president in September.
Hindenburg accused Milton of making false claims about Nikola’s technology in order to grow the company and partner with car manufacturers. The report, titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” was released two days after the company announced a deal with General Motors that caused both shares to surge. the companies in September. He characterized Nikola as Milton’s “intricate fraud built on dozens of lies”.
Nikola denied and disputed many of the allegations, however the company confirmed one of Hindenburg’s biggest claims – that it staged a video showing a truck that appeared to be functional but was not.
Two women also filed sexual assault allegations with Utah authorities against Milton. Both charges were over 15, but involve a cousin and an office assistant when they were both 15. Milton’s cousin Aubrey Ferrin Smith said he assaulted her in 1999 when she was 17, while the other woman says her alleged assault took place in 2004 when she was 22. CNBC does not identify victims of sexual assault unless the victim chooses to publicly release their name.
Reuters contributed to this report.
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