Published September 3, 2026. Based on a federal indictment announced by the U.S. Attorney’s Office for the Southern District of New York.
Linqto told ordinary investors it could get them into private companies before those companies hit the stock market. Federal prosecutors now say founder William Sarris used that pitch to pull more than $450 million from over 13,000 customers while hiding how the prices were actually set.
According to the indictment, Sarris and Linqto’s former second-in-command Joseph Endoso sold customers on “market” prices in a market where the real price was hard to see. Prosecutors say that was not a minor inconvenience. It was the whole trick.
What prosecutors say Linqto did
The government alleges Sarris created false scarcity, told customers they were buying at market prices, and imposed markups that in some cases exceeded 200 percent. Prosecutors say Linqto had an informational advantage and used it to squeeze people who thought they were getting a fair shot at pre-IPO investing.
That is a hell of a business model: sell access to a secretive market, then allegedly charge people extra because they cannot see the real price. It is basically a carnival game with a pitch deck.
More than 13,000 customers were involved
The DOJ says the alleged scheme ran from 2020 through 2025. By the time Linqto entered bankruptcy in 2025, prosecutors say the markup scheme had drawn in more than $450 million from over 13,000 customers.
The indictment also alleges that, when Linqto came under financial pressure in January 2025, Sarris sold shares allocated to customer holdings without telling the customers.
One executive pleaded guilty. The founder is charged.
Former Linqto second-in-command Joseph Endoso pleaded guilty on August 27 in connection with the scheme and is cooperating with the government, according to prosecutors. Sarris, 75, of Monterey, California, was arrested and charged with securities fraud, broker-dealer fraud, wire fraud, and conspiracy counts.
The allegations against Sarris have not been proven in court. He is presumed innocent unless and until proven guilty. But Endoso’s guilty plea and the size of the alleged losses are why this is more than another vague “investors may have concerns” story.
The part that should bother everyone
Private-market investing is sold as the shortcut regular people can take before the rich guys in suits show up. Prosecutors say Linqto used the lack of price transparency against the very people it was supposed to give access to.
More than 13,000 customers trusted the pitch. The company ended in bankruptcy. And the DOJ says markups may have exceeded 200 percent.
Source: U.S. Department of Justice, September 2, 2026.
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