Nikola (NASDAQ:NKLA) founder Trevor Milton was sentenced Monday to four years in prison in connection to defrauding investors of the embattled electric- and hydrogen-powered truck maker.
Milton also was fined $1 million and could later be forced to forfeit property as part of his sentence.
The punishment was far lower than the 11 years prosecutors had requested at Milton’s sentencing in U.S. District Court in Manhattan.
But it was substantially more than the non-jail sentence of probation sought by Milton’s attorneys.
Milton has shown little to no remorse for his actions, prosecutors said. In a letter to Ramos on Sunday, prosecutors wrote that the judge should take into account Milton’s “profound denial of accountability and insistence on blaming others.”
The judge allowed Milton to remain free on bail while he appeals his conviction, according to Reuters.
Milton was convicted in October 2022 on two counts of wire fraud and one count of securities fraud. He had faced a recommended sentence of 60 years in prison under federal sentencing guidelines for those crimes.
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 quickly considered to be one of the most promising EV startups – valued at its peak at more than $30 billion – until allegations regarding false and misleading statements were uncovered by short-seller Hindenburg Research.
NKLA shares gained five cents, or 6.1%, to 87 cents.