The Securities and Exchange Commission charged Linqto founder William Sarris and former chief executive Joseph Endoso with defrauding thousands of retail investors who used the platform to buy shares of pre-IPO companies. The complaint describes a scheme built on inflated prices, manufactured scarcity, and compliance assurances that regulators say were false.
What happened in the Linqto case
Linqto Inc., headquartered in San Jose, California, operated an online platform that let everyday investors buy slices of privately held unicorn companies before their initial public offerings. Sarris founded the company. Endoso, 66, later succeeded him as chief executive officer.
Press accounts of the enforcement action put the money involved at more than $400 million. Regulators say the alleged deception touched thousands of customer accounts.
The four core allegations
According to the complaint, Sarris and Endoso misled investors in four main ways.
- False pricing claims. The executives indicated that Linqto’s prices reflected current market conditions or below-market prices, when almost all offerings were priced higher than fair value.
- Manufactured scarcity. The platform described certain securities as sold out or fully subscribed when Linqto actually held additional shares available for sale.
- Algorithm claims. Investors were told an algorithm automatically set certain prices and that prices would rise and fall with demand, while Linqto personnel kept setting prices manually.
- Compliance assurances. The executives touted Linqto’s compliance with federal securities laws even after their own counsel told them the business violated federal securities regulations.
Key facts about the SEC complaint
| Item | Detail |
|---|---|
| Filed | October 9, 2026, in the U.S. District Court for the Northern District of California |
| Defendants | William Sarris, founder; Joseph Endoso, former CEO |
| Company | Linqto Inc., San Jose, California |
| Investors affected | Thousands of retail investors seeking pre-IPO exposure |
| Amount involved | More than $400 million, according to press reports |
| Remedies sought | Injunctions, disgorgement, civil penalties, officer-and-director bars |
Unregistered offerings widen the case
The complaint goes beyond misrepresentation. Regulators also allege the pair unlawfully operated unregistered investment companies and sold securities in unregistered transactions to unaccredited investors through a Linqto subsidiary.
Charges include Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act, and Rule 10b-5, along with aiding and abetting Linqto’s own violations. Sarris faces an additional count under Section 20(a) as a control person.
A parallel criminal case
Federal prosecutors brought related criminal charges against the former executives. Trade press reports indicate Endoso has entered a guilty plea in the criminal matter, while Sarris maintains his innocence and intends to fight the charges in court.
Red flags investors should recognize
The Linqto allegations follow a pattern securities regulators know well. Investors who run into the signals below should slow down and verify before committing money.
- Claims that shares are sold out or fully subscribed, used to create urgency.
- Prices described as market-based without any independent verification.
- Pricing attributed to an algorithm that no outside party can examine.
- Offerings structured outside registered channels for investors who do not meet accreditation standards.
What affected Linqto investors can do now
Investors who bought pre-IPO shares through Linqto should gather records while the case unfolds. Account statements, trade confirmations, and marketing materials that described pricing or availability will anchor any recovery effort.
Options may include arbitration, class participation, or individual legal action, depending on account agreements and timing. Deadlines can bar claims filed too late, so early review matters.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment fraud recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
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Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
