--- title: "SEC Charges Former Linqto Executives Over $430M Pre-IPO Platform Sales" description: "Regulators allege William Sarris and Joseph Endoso deceived retail investors on pricing and ran unregistered investment vehicles from 2021 to 2024." url: https://basisdesk.news/news/sec-charges-former-linqto-executives-pre-ipo-fraud published: 2026-10-09T19:55:40.458Z modified: 2026-10-09T19:55:40.458Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: bearish tickers: [] tags: [sec, enforcement, pre-ipo, fraud, litigation] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # SEC Charges Former Linqto Executives Over $430M Pre-IPO Platform Sales Regulators allege William Sarris and Joseph Endoso deceived retail investors on pricing and ran unregistered investment vehicles from 2021 to 2024. ## At a glance - **What happened:** The SEC charged former Linqto executives William Sarris and Joseph Endoso on Oct. 9, 2026, with defrauding retail investors in pre-IPO share offerings. - **Why it matters:** The action challenges secondary market platforms selling over $430 million in private company special purpose vehicles without proper registration. - **Who is affected:** Retail investors who used Linqto's platform between 2021 and 2024, as well as defendants William Sarris and Joseph Endoso. - **Takes effect:** 2026-10-09 - **What's next:** The civil case will proceed in the US District Court for the Northern District of California. - **Status:** enforcement - **Primary source:** [William Sarris and Joseph Endoso](https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26672) — SEC Litigation Releases ## Key points - The SEC charged former Linqto executives William Sarris and Joseph Endoso on Oct. 9, 2026, over pre-IPO investment offerings. - A Linqto subsidiary allegedly sold more than $430 million in private company special purpose vehicles to retail investors from 2021 to 2024. - The agency alleges manual price fixing, false claims of sold-out offerings, and sales of unregistered securities to unaccredited buyers. ## Editorial remark - **Context:** Retail access to secondary private equity and pre-IPO shares grew rapidly during the 2021 to 2024 market cycle, often structured via special purpose vehicles that avoided standard public reporting disclosures. - **Impact:** Linqto investors face regulatory findings that their pre-IPO share purchases were routinely priced above fair value, while secondary retail platforms face tighter scrutiny over registration exemptions. - **Watch:** Proceedings in the US District Court for the Northern District of California, including initial responses or motions to dismiss from counsel representing Sarris and Endoso. The US Securities and Exchange Commission filed charges on Oct. 9, 2026, against William Sarris and Joseph Endoso, two former executives of San Jose, California-based platform Linqto, Inc. [1]. The regulator alleges the pair deceived thousands of retail investors who used the platform to buy stakes in private, pre-IPO companies [1]. According to the SEC complaint filed in the US District Court for the Northern District of California, a Linqto subsidiary sold over $430 million in special purpose vehicles holding interests in private companies between at least 2021 and 2024 [1]. Regulators allege Sarris and Endoso falsely marketed offerings as reflecting fair market or discounted values, despite pricing nearly all securities above fair value [1]. The SEC also alleges the executives falsely claimed securities were "sold out" when inventory remained, claimed an automated algorithm set dynamic prices when personnel actually priced offerings manually, and touted regulatory compliance despite warnings from legal counsel that the business breached federal securities laws [1]. ## Unregistered Offerings and Enforcement Demands The complaint further alleges that the executives operated unregistered investment companies and sold unregistered securities to unaccredited investors through the Linqto subsidiary [1]. Sarris and Endoso face charges under Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, along with related aiding and abetting provisions [1]. The agency also charged both individuals with registration violations under the Securities Act and the Investment Company Act of 1940, while charging Sarris with control person liability under Section 20(a) of the Exchange Act [1]. The SEC is seeking permanent injunctive relief, civil monetary penalties, disgorgement of ill-gotten gains with prejudgment interest, and officer and director bars against both former executives [1]. The civil lawsuit follows an investigation led by the SEC's San Francisco Regional Office, with assistance acknowledged from the FBI and the US Attorney's Office for the Southern District of New York [1]. ## FAQ **What is Linqto accused of doing?** Former executives William Sarris and Joseph Endoso allegedly misled retail investors regarding pricing, inventory availability, algorithmic pricing claims, and regulatory compliance while selling over $430 million in private company interests. **What relief is the SEC seeking against the executives?** The SEC is seeking civil monetary penalties, permanent injunctive relief, disgorgement with prejudgment interest, and officer and director bars against both Sarris and Endoso. ## Sources 1. [William Sarris and Joseph Endoso](https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26672) — SEC Litigation Releases, 2026-10-09 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai