TECHNOLOGY

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

PUBLISHED Sep 2, 2026, 6:58 PM ET

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Federal prosecutors in Manhattan announced criminal fraud charges against William Sarris and Joseph Endoso, former chief executive officers of the now-bankrupt investment platform Linqto, over their alleged roles in a four hundred fifty million dollar pre-IPO scheme. Sarris, who founded the Silicon Valley firm and served as chief executive for fourteen years, faces six counts including securities fraud, wire fraud, broker-dealer fraud, and conspiracy. Endoso pleaded guilty to related charges and is cooperating with authorities. According to the indictment, Sarris allegedly exploited investor demand for private companies such as Anthropic, Ripple, and SpaceX by manufacturing false scarcity and imposing unauthorized markups exceeding two hundred percent between twenty twenty and twenty twenty-five. The platform raised funds from over thirteen thousand investors before filing for Chapter eleven bankruptcy protection last July. Defense counsel for Sarris stated that he is innocent and intends to contest the charges in court.

By James Porter | JQJO News

Timeline of Events

On January 1 2020 Platform operators allegedly initiated the multi-year pre-IPO investment fraud scheme.
On January 1 2025 Sarris allegedly sold customer holdings to meet pressing revenue targets.
On July 1 2025 Linqto officially filed for Chapter eleven bankruptcy protection in court.
On February 1 2026 A Texas bankruptcy judge approved the company debt reorganization plan.
On September 2 2026 Prosecutors announced criminal fraud charges against two former chief executives.
On September 2 2026 William Sarris was formally charged with six federal criminal counts.
On September 2 2026 Joseph Endoso pleaded guilty to securities fraud and conspiracy charges.
On September 3 2026 Legal representatives announced that Sarris intends to contest allegations.
On September 3 2026 Regulatory bodies increased scrutiny on secondary private market trading platforms.
On September 3 2026 Affected investors awaited further distributions from approved bankruptcy fund restructuring.

News Intelligence

Immediate US impact: Private market investors face heightened due diligence and regulatory scrutiny.
Possible long-term US impact: Regulators may implement stricter oversight on secondary private investment platforms.
Most affected groups: Retail investors, technology founders, and secondary trading platforms are impacted.
Reader priority: Readers should prioritize verified regulatory filings and official Department statements.

Media Bias

Articles Published:: 21
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 21

Explain Framing

Left: Emphasizes regulatory failures protecting retail investors from fraudulent private markets. Center: Reports official prosecutor statements and legal defense positions neutrally. Right: Highlights systemic market risks and corporate governance failures in private firms.