Instead of a criminal case for fraud, he could get a fine and a temporary suspension.
The head of Tesla Elon Musk was close to signing a pre-trial agreement with the US Securities Commission, but “at the last minute” refused it. This was reported by The Wall Street Journal and CNBC , citing sources.
If Musk entered into a pre-trial agreement with the US authorities, it would help him avoid accusations of forgery and fraud. He could not admit guilt. Such an agreement implied a fine for Tesla (his sum is not called) and the removal of Musk from the post of chairman of the board of directors for two years. The company would have to look for a temporary replacement as two independent top managers.
According to CNBC, Musk refused to sign the agreement, because he felt that “he can not be honest with himself.” According to sources, the head of Tesla “could not live with the thought” that he approved a document that tarnished the company’s reputation.
Tesla has not officially commented on the information yet.
The American regulator accused Musk of forgery and the introduction of shareholders in a twisted tweet about the possible transformation of Tesla into a private company. According to the US authorities, the entrepreneur has set a price of $ 420 per share for privatization, as he recently learned about its importance in the culture of marijuana and decided that his girlfriend would find this amusing. The head of the company called the claims groundless.