SEC charges two former Linqto executives over pre-IPO investment platform

The US Securities and Exchange Commission charged William Sarris and Joseph Endoso, both former executives of Linqto, Inc., on 9 October 2026, alleging that they misled retail investors who used Linqto’s online platform to invest in pre-IPO companies. Linqto is based in San Jose, California.

What the SEC alleges

According to the complaint, a Linqto subsidiary sold more than $430 million of special purpose vehicles holding interests in private companies to retail investors from at least 2021 to 2024. The SEC alleges that during that period the two executives misled investors in four ways:

• by suggesting Linqto’s prices reflected current market conditions or were below market, when almost all its offerings were priced above fair value;
• by describing some securities as sold out or fully subscribed when Linqto had more shares available;
• by claiming an algorithm set certain prices automatically and moved them with investor demand, when Linqto staff continued to set prices by hand;
• by telling investors Linqto complied with federal securities laws after counsel had told them its business breached federal securities regulations.

The complaint also alleges that the pair unlawfully operated unregistered investment companies and sold securities in unregistered transactions to unaccredited investors through the subsidiary.

The charges

The complaint, filed in the US District Court for the Northern District of California, charges both men with fraud under Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5, with aiding and abetting Linqto’s violations of the same provisions, with breaching the registration requirements of Sections 5(a) and 5(c) of the Securities Act, and with aiding and abetting violations of Section 7(a) of the Investment Company Act. Sarris is also charged with control person liability.

The SEC is seeking injunctions, disgorgement with prejudgment interest, civil penalties and officer and director bars. The matter is at the complaint stage and the allegations have not been proven.

What it means for investors

The case concerns how an online platform presented its own prices and supply to retail customers. Investors using any platform that sells private-company exposure can check how it is registered and supervised before they commit money; our guide on how to check a broker licence sets out the steps.

The SEC thanked the US Attorney’s Office for the Southern District of New York and the FBI for their assistance.