# Nikola Founder Trevor Milton Faces Sentencing for Fraud Charges
In this article, we provide an update on the legal proceedings involving Trevor Milton, the founder of Nikola Corp. Milton is set to be sentenced on Monday in a New York courtroom for three charges related to defrauding investors of the embattled electric- and hydrogen-powered truck maker.
## Guilty Verdict and Potential Sentence
Milton was found guilty in October 2022 on two counts of wire fraud and one count of securities fraud. He could face up to 60 years in prison. However, prosecutors in New York have recommended a sentence of 11 years imprisonment.
## Rise and Fall of Nikola
Milton became an overnight billionaire when he took Nikola public through a deal with a special purpose acquisition company in June 2020. The company was initially considered one of the most promising EV startups, with a peak valuation of over $30 billion. However, allegations of false and misleading statements made by short-seller Hindenburg Research tarnished the company’s reputation.
## Comparison to Elizabeth Holmes
Prosecutors have drawn comparisons between Milton and Elizabeth Holmes, the disgraced founder of Theranos. Holmes was sentenced to more than 11 years in prison for defrauding investors in her blood testing startup. Prosecutors argue that just as Holmes lied about Theranos-manufactured blood analyzers, Milton lied about the operability of the Nikola One semitruck.
## Distinction from Theranos
Milton has attempted to distinguish himself from Holmes by highlighting that Nikola is still a real business, unlike Theranos. However, court documents reveal that Milton’s company faced significant challenges after the Hindenburg report, leading to his resignation as executive chairman in September 2020.
## Current State of Nikola
Since Milton’s resignation, shares of Nikola have plummeted, and the company has struggled to retain executives. Nikola Chairman Stephen Girsky, whose SPAC brought the company public, has been appointed CEO. The company’s shares have recently traded under $1, with a market value of about $327 million.
## Impact on SPACs
Nikola was one of the first heavily publicized companies to go public through a SPAC. Its success inspired numerous other startups to follow suit. However, the Securities and Exchange Commission has since cracked down on the practice, leading to increased scrutiny and regulation.
This is a developing story, and we will provide additional updates as they become available.
