By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag
SDNY COURTHOUSE, Sept 29 – The trial of Nikola founder Trevor Milton for wire and securities fraud moved, on September 29, through the cross examination of Utah land seller Peter Hicks to another Robinhood investor, Mark Schonberger. Inner City Press was there, and live tweeted. Thread:
AUSA: Mr. Hicks, did there come a time that you filed a lawsuit against Mr. Milton?
Hicks: The winter of this year. AUSA: What is the demand?
Hicks: $45 million. Under Utah fraud law, it's treble damages.
AUSA: Who contacted who? Hicks: The government contacted my attorney. AUSA: Did you invest in Nikola based on that [recorded] call? Milton's lawyer
Torrey Young: Objection. Judge Ramos: Overruled. Hicks: Yes, I invested because of the call.
AUSA: If it turned out Nikola did not have the dedicated routes, would it have changed your view? Hicks: Yes. AUSA: If they had no contracts to produce hydrogen, would it have changed your evaluation of the deal with Milton? Hicks: Yes.
AUSA: No further questions
Judge Ramos: Cross examination.
Milton's lawyer Torrey Young: Mr. Hicks, you're seeking fooorty fiiive million dollars [says it slow] from Trevor Milton, correct?
Hicks: Yes. Young: But you sold the ranch to Trevor for more than you paid, right?
Young: And you only sued after you found out that Trevor Milton was charged with a crime, right? Your lawyers called and made a threat? Hicks: I'm not going to characterize it that way.
Young: You proposed that Trevor pay $39 million for a property you'd paid $4 million for, right? Hicks: It was a proposal to resolve the matter. Young: And when Trevor Milton said no, you sued, correct? Hicks: Yes.
Young: You're a lawyer, right? Hicks: I haven't practices law since 1984. Young: But you have a law degree, yes? Hicks: Yes.
Young: The phone call, it was recorded by Lucas Hicks on his phone and he gave it to the US, right? Hicks: Yes.
Young: When the call was recorded, you were in Massachusetts and you didn't tell Trevor in Utah that he was being recorded, yes? Hicks: I think that's accurate. Young: It was illegal, right? Hicks: I don't know enough to say that. Young: You've heard of immunity?
Young: Your a real estate mogul, right? Hicks: I wouldn't characterize it that way. I did my first land transaction in 1998.
Young: Let's play the recorded call. [On it, Trevor says he doesn't enjoy SEC filings, that his forte is not running factories]
Young: You've heard that stock goes up and down, right? Hicks: I have. But while I was willing to take the market risk, I was not willing to take the fraud risk. Under Utah law --
Young: Objection! Move to strike! Judge Ramos: Sustained. AUSA: May we approach?
There's been an argument about the prosecutors' summary charts. Milton's lawyer Brad Bondi wants reference to Milton buying hunting rifle(s) omitted "for this New York jury." They'll be referred to as "miscellaneous" expenses. AUSA reading long list of exhibits.
Now next witness, self-described mid-level investor Mark Schonberger. He lives in Fort Lauderdale, owns a medical sales company and trades on Robinhood. AUSA: How did you hear about Nikola?
Schonberger: Multimedia, stuff on TV
AUSA Jordan Estes plays, again, audio of Milton claiming Nikola had built the Badger "from the ground up." Schonberger: That is important to me. I own a Tesla.
Cross examination by Milton's lawyer Caruso. Caruso: You are suggesting that the truck wasn't built from the ground up? Schonberger: I'm not suggesting anything. Telsa builds its cars from the ground up.
Caruso: Were you aware that early Teslas used other companies' parts? Schonberger: No. Caruso: Because you don't anything about building cars or trucks, right?
AUSA: Objection! Judge Ramos: Overruled.
Caruso: You thought that the Nikola orders could not be canceled? Schonberger: I believed that. Caruso: And you didn't know that Hindenberg was a short seller? Schonberger: Not at that time. I just read the information they provided.
Re-direct. AUSA Estes: You did research before investing, right? Schonberger: Yes. I saw Trevor Milton's statements and thought you could believe what a CEO of a publicly traded company says.
Caruso: Move to strike his legal analysis.
Judge Ramos: Overruled.
With Schonberger off the stand, prosecution says they will not be calling the other investor witness to the stand. To fight about the summary charts, Judge Ramos will send the jury home for the day.
The case is US v. Milton, 21-cr-478 (Ramos)
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