MANHATTAN — William Sarris, the founder of pre-IPO investment platform Linqto Inc. was arrested on September 2, 2026, and charged with securities fraud, broker-dealer fraud, wire fraud, and conspiracy. The indictment alleges that a scheme orchestrated by Sarris defrauded more than 13,000 customers of over $450 million.

Sarris is charged with two counts of securities fraud, one count of broker-dealer fraud, one count of wire fraud, one count of conspiracy to commit securities fraud and broker-dealer fraud, and one count of conspiracy to defraud the United States and to conduct unregistered investment company transactions. Each count of securities fraud, broker-dealer fraud, and wire fraud carries a maximum sentence of 20 years in prison, while the conspiracy charges each carry a maximum sentence of five years in prison.

The 75-year-old Sarris resides in Monterey, California, and is scheduled to be presented in the U.S. District Court for the Northern District of California. Deputy United States Attorney Sean S. Buckley and FBI Assistant Director in Charge James C. Barnacle, Jr. announced the unsealing of the indictment.

The indictment alleges that from 2020 through 2025, Sarris engaged in a scheme to defraud Linqto customers by exploiting the lack of visibility into the true price of private securities. Prosecutors allege that Sarris manipulated Linqto’s pricing model to maximize revenue while telling customers they were buying at market prices, and that he manufactured false scarcity to drive up prices.

According to the indictment, markups imposed on investors exceeded 200% in some cases. The document further alleges that Sarris pushed markups beyond what his lawyers warned was lawful and sold shares allocated to customers’ holdings without informing them in January 2025 to help meet revenue targets. Sarris also allegedly evaded regulatory regimes to avoid disclosures.

"This Office is committed to pursuing those who would take advantage of the private markets—including the ‘pre-IPO’ market—to defraud ordinary investors," Buckley said. "William Sarris allegedly exploited the ‘pre-IPO’ market to boost his company’s revenue at the expense of tens of thousands of investors."

Buckley added that in the private markets, which lack the pricing transparency of a public exchange, investors rely on the honesty of those offering access. "The defendants allegedly lied about what the ‘market’ price was, fabricated scarcity to inflate prices, and imposed staggering markups that in some cases exceeded 200%."

Linqto was founded in 2010 by William Sarris and his wife Vicki Sarris, with a mandate to democratize access to private markets for accredited investors. Sarris co-founded the San Francisco Bay Area-based platform and served as CEO for 14 years before becoming Executive Chairman in 2024. The company collapsed into bankruptcy by mid-2025.

Sarris was informed of compliance violations via a legal memorandum dated October 16, 2023, and an internal memo on October 25, 2024, yet failed to take corrective action. The SEC initiated an investigation into Linqto in October 2024, following allegations of securities law violations, and filed four claims in bankruptcy proceedings. Linqto’s Chapter 11 bankruptcy plan received 95% approval from customers, with VanEck selected as manager of the Closed-End Fund and Forge Global as Liquidating Trustee.

Joseph Endoso, 66, of Ross, California, previously served as CFO at OTCXN, Inc. a fintech company focused on blockchain-based trading infrastructure, before joining Linqto in 2019. Endoso pled guilty before U.S. District Judge Denise L. Cote on August 27, 2026, to one count of securities fraud and one count of broker-dealer fraud. He is cooperating with the Government.

"William Sarris’s alleged fraud scheme caused real financial harm to victims who trust our financial markets," Barnacle said. "Protecting those investors is one of our top priorities, and we thank our partners in the Securities and Commodities Fraud Task Force for their critical support in bringing this case forward."