Exposed! Startup Boss Manipulated Share Prices for Massive Profits
The founder of the pre-IPO stock investment firm, Linqto, William Sarris, has been officially indicted on fraud charges by US federal prosecutors. He is accused of defrauding tens of thousands of investors who capitalised through his platform.
According to a report by The Wall Street Journal on Tuesday (2/9/2026), prosecutors allege that Sarris deliberately created a false impression of scarcity regarding private company shares to drive up selling prices. This practice was reportedly carried out to boost company revenue, even after his own legal team warned that such price markups potentially violated the law.
Sarris now faces four serious indictments: securities fraud, broker-dealer fraud, wire fraud, and conspiracy. Sarris’s lawyers have denied all allegations and stated that their client will fight the legal proceedings.
The case has become increasingly complex after another former Linqto executive, Joseph Endoso, pleaded guilty to his involvement in the scheme. Endoso is reportedly cooperating with authorities in the ongoing investigation.
Issues regarding Sarris’s alleged aggressive pre-IPO share sales tactics were first reported last summer, coinciding with the emergence of investigations by the US Securities and Exchange Commission (SEC) and the US Department of Justice into Linqto.
Since January 2025, Linqto’s management has changed and has begun cooperating with the SEC investigation. The US Department of Justice also opened a separate criminal investigation in early 2025. Shortly thereafter, Linqto filed for bankruptcy protection to secure client assets amidst uncertainty regarding the ownership status of investors’ shares.
This case has heightened concerns regarding investment risks in the private equity market. The SEC is reportedly requesting evidence from several registered investment managers regarding claims of pre-IPO share ownership within their investment products.
One investment fund had even promoted exposure to SpaceX shares, but later revealed to its investors that the shares had been sold before SpaceX officially went public, thereby limiting the potential returns for investors.