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  By Jonathan Stempel
  
  Sept 10 (Reuters) - A U.S. judge said Trevor Milton, the Nikola founder who was
  sentenced to four years in prison after being convicted of
  fraud, must pay the electric truck maker $167.7 million for making false and misleading statements about the company
  to the public.
  
  In a decision on Monday, U.S. District Judge Diane Humetewa
  in Phoenix upheld a divided arbitration panel's November 2023
  award in Nikola's favor.
  
  Humetewa said the panel acted within its authority in interpreting
  a separation agreement that Milton entered when he resigned as Nikola chief executive in September 2020.
  
  
  
  The panel found Milton liable to pay $121.25 million, or 97%, of Nikola's $125 million fine from settling a U.S.
  Securities and Exchange Commission civil fraud case, and to cover nearly
  $46.5 million in legal fees and expenses.
  
  Milton, 42, argued that the award was excessive and amounted to "rough justice" because the panel ignored
  the "relative fault" of other Nikola executives, directors and employees.
  
  
  But the judge said the panel's analysis was plausible,
  including its assigning 3% fault to the Phoenix-based company for failing to
  stop Milton from misleading investors.
  
  Lawyers for Milton did not immediately respond
  to requests for comment on Tuesday. Nikola's lawyers had no immediate comment.
  
  
  Jurors in Manhattan convicted Milton in October 2022 on two counts of
  wire fraud and one count of securities fraud, after prosecutors said he lied
  to investors about Nikola's technology.
  
  Prosecutors said Milton's improper statements included
  that Nikola built a pickup from the "ground up," developed batteries he knew it was buying
  elsewhere, and had made progress in creating a "Nikola One" semi-truck
  he knew did not work.
  
  Milton is free on bail while he appeals his conviction and December 2023 sentence.
  
  
  The case is Nikola Corp v Milton, U.S. District Court, District
  of Arizona, No. 23-02635. (Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)
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