US charges two former Linqto CEOs over $450 million 'pre-IPO' fraud scheme, one pleads guilty

According to Business Recorder, US prosecutors on Wednesday brought criminal fraud charges against two former chief executives of Linqto, an online investment platform, over an alleged scheme worth $450 million. The scheme targeted thousands of investors who hoped to profit from private firms before they listed publicly. One of the two, Joseph Endoso, has already pleaded guilty and is cooperating with prosecutors.

William Sarris, 75, founded Linqto and served as its chief executive for 14 years before the firm went bankrupt. He faces six counts in Manhattan, including securities fraud and wire fraud, along with broker-dealer fraud and a conspiracy charge. Prosecutors allege he exploited the difficulty of valuing firms such as Anthropic, Ripple and SpaceX by creating an impression of limited supply and adding markups. According to the indictment, he told investors they were paying market prices, although he allegedly imposed markups exceeding 200% at times.

The alleged scheme ran from 2020 to 2025, and Sarris allegedly sold some customers' holdings in January 2025 to meet revenue targets. Linqto halted operations two months later and filed for Chapter 11 protection in July 2025. In February, a Texas bankruptcy judge signed off on a reorganisation plan that let customers choose between units in a winding-down vehicle or a closed-end vehicle holding private shares. Sarris's lawyer, Tim Treanor, said his client is innocent and will fight the charges.