SEC Sues Linqto Executives for Alleged $430 Million Retail Investor Fraud

Huo Xing Finance reports that, according to the U.S. Securities and Exchange Commission (SEC) website, the SEC formally filed charges on October 9, 2026, against former Linqto executives William Sarris and Joseph Endoso, accusing them of fraud in selling pre-IPO equity in unicorn companies to retail investors through their online platform. Between 2021 and 2024, Linqto’s subsidiaries sold over $4.3 billion in special purpose vehicles (SPVs) to retail investors. The SEC alleges that the two defendants falsely claimed prices were below market value (when in fact they were nearly all above fair value), misrepresented shares as “sold out,” falsely asserted that pricing was determined by an algorithm (when it was manually set), and continued to claim compliance despite knowing their actions violated regulations. Additionally, they are accused of operating an unregistered investment company and selling unregistered securities to non-accredited investors. The SEC is seeking an injunction, disgorgement of ill-gotten gains plus interest, civil penalties, and a permanent bar from serving as officers or directors of public companies. The case is being investigated by the SEC’s San Francisco Regional Office, with assistance from the U.S. Attorney’s Office for the Southern District of New York and the FBI.