Overpriced 'Unicorn' Shares and Fake 'Sold Out' Labels: SEC Sues Former Linqto Executives Over Pre-IPO Platform

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

Pre-IPO investing promises ordinary people a slice of the hottest private companies before they go public. The Securities and Exchange Commission says that at one online platform, retail investors were told they were getting fair or even below-market prices when, in almost every case, they were not.

On Oct. 9, 2026, the SEC sued William Sarris and Joseph Endoso, both former executives of San Jose, California-based Linqto, Inc., in federal court in the Northern District of California [1]. The case is SEC v. William Sarris and Joseph Endoso, No. 26-cv-11675.

Important: These are civil allegations. Neither man has been found liable, and the SEC's release does not report any settlement or response from them. We found no public statement from either man or a lawyer for them.

What the SEC alleges

According to the SEC's complaint, from at least 2021 to 2024 a Linqto subsidiary sold more than $430 million of special purpose vehicles, which held interests in private "unicorn" companies, to retail investors [1]. The SEC alleges that during that period Sarris and Endoso misled investors by:

1. Pricing. Indicating that Linqto's prices reflected current market conditions or were below market, when almost all of its offerings were allegedly priced above fair value.
2. Scarcity. Labeling some securities "sold out" or "fully subscribed" when Linqto allegedly still had shares available.
3. The "algorithm." Claiming an algorithm automatically set certain prices that would rise and fall with investor demand, when Linqto personnel allegedly kept setting prices manually.
4. Compliance. Telling investors Linqto complied with federal securities laws even though, the SEC alleges, their own counsel had told them the business violated federal securities regulations.

The complaint also alleges the two operated unregistered investment companies and sold securities in unregistered transactions to unaccredited investors through Linqto's subsidiary [1].

The charges and what the SEC wants

The SEC charges Sarris and Endoso with violating the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5, and with aiding and abetting Linqto's violations of the same provisions. It also charges violations of Sections 5(a) and 5(c) of the Securities Act and aiding and abetting violations of Section 7(a) of the Investment Company Act. Sarris is additionally charged with control-person liability [1].

The agency seeks injunctions, disgorgement with prejudgment interest, civil penalties, and officer-and-director bars against both men. The SEC thanked the U.S. Attorney's Office for the Southern District of New York and the FBI for their assistance; the release does not say whether any criminal case has been filed, and we are not aware of one [1]. Linqto itself is not a named defendant in this release.

Why pre-IPO platforms carry special risk

Shares in private companies don't trade on a public exchange, so there is no easy way for a buyer to check what a fair price is. Investors typically buy through a special purpose vehicle that holds the shares, adding fees and another layer between the buyer and the company. Selling before the company goes public or is acquired can be difficult or impossible. That combination makes claims about pricing and scarcity especially important, and especially hard for a retail investor to verify.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags on investment platforms

• Claims that prices are "below market" with no independent way to check.
• "Sold out" or "last chance" labels that push you to commit quickly.
• Pricing described as automatic or algorithmic without any published method.
• Broad assurances that the platform is "fully compliant" in place of registered offerings and clear disclosures.

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
William Sarris (former Linqto executive)	U.S. District Court, N.D. Cal. (No. 26-cv-11675)	SEC civil complaint filed Oct. 9, 2026; allegations only; no judgment or settlement reported	[1]
Joseph Endoso (former Linqto executive)	Same	SEC civil complaint filed Oct. 9, 2026; allegations only; no judgment or settlement reported	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26672, "SEC Charges Executives with Allegedly Defrauding Thousands of Retail Investors Seeking Exposure to Pre-IPO Companies," Oct. 9, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26672
2. SEC complaint, SEC v. Sarris and Endoso. https://www.sec.gov/files/litigation/complaints/2026/comp26672.pdf

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