The Nikola electric vehicle company will pay $ 125 million to resolve civil charge from the Securities Commission and Exchange of investor fraud. The company is accused of misleading investors about in-house production capabilities, technological advancements, orders, and orders, hydrogen production and more.

The founder of the Second SEC and former CEO of Trevor Milton conducted a “community relations campaign aimed with inflating and maintaining Nikola stock prices” through tweets and media appearances before the company made commercial products. It is said that the company also misleads investors with “wrong facts interpreting or eliminating the facts” about hydrogen stations in their headquarters, how long to refuel the vehicle concept, source and power costs for the production and benefits of hydrogen planned from the partnership debated with car makers main.

“When the order found, Nikola Corporation was responsible for Milton’s statement which was suspected of misleading and for alleged fraud other, all of which incorrectly described the true state of the company’s business and technology,” said Director of Enforcement SEC Gurbir S. Grew Vewal in a statement.

Although Nikola did not recognize or deny the allegations of violations of securities law, it approved several voluntary attempts, to pay a penalty and stop and quit “violations of the future for the provisions accused.” This will work with litigation and ongoing investigations too.

“We are happy to bring this chapter close to the company has now completed all government investigations,” Nikola said in a statement. “We will continue to execute our strategies and vision to meet our business plans, including giving trucks to customers, expanding our manufacturing facilities and our sales and service networks, and building our hydrogen infrastructure ecosystems including hydrogen production stations, distribution and expenses.” The company also said that it was seeking replacement from Milton “for costs and damage in connection with government and regulatory investigations.”

Nikola became a public company traded in June 2020 through special purpose procurement transactions (SPAC), which allowed the company to bypass the GO Public process. September, the report suggested the SEC was looking for nicola claims about the electric truck. Milton, who has resigned as CEO before the company go public, resigned as executive chairman a few days after the news appeared about the investigation.

A jury charged Milton on charges of fraud in July 2021. He was accused of lying to investors about “almost all business aspects” to increase the price of Nikola. He denied the allegations and was free of guarantees waiting for the trial scheduled in April.

Meanwhile, Nikola delivered its first electricity truck to customers last week.