The co-founder of an online investment platform that promised to democratize access to private securities is facing charges in connection with an alleged scheme to levy excessive markups on pre-IPO shares.
In an indictment filed in the Southern District of New York, William Sarris, the co-founder and former CEO of Linqto Inc., was charged with securities fraud, broker-dealer fraud, wire fraud and conspiracy.
According to the indictment, between 2020 and 2025, customers of the online investment platform were overcharged for private securities. Among other things, it’s alleged that Sarris manufactured false scarcity for private securities to drive up prices, manipulated the platform’s pricing model, and charged excessive markups.
The median markup charged by the firm was 60%, with some transactions carrying markups of over 200%, it alleged.
The indictment alleged that the scheme was crafted to make the platform appear to be profitable so Sarris could cash out of the company.
It’s also alleged that when the company faced growing financial pressure in early 2025, Sarris sold securities that were allocated to clients to support the company’s revenues. Nevertheless, by mid-2025, the company fell into bankruptcy.
Additionally, the indictment alleged that the platform was structured to avoid securities regulations and investor protections. For instance, investors’ private securities holdings were held in special purpose vehicles (SPVs) designed to avoid registration requirements — which would have exposed its markup and pricing practices and subjected the firm to regulatory oversight.
Alongside the indictment, the company’s former CEO, Joseph Endoso — who took the post in 2024, with Sarris becoming executive chairman — pleaded guilty to securities fraud, broker-dealer fraud, and conspiracy. The authorities said he is cooperating with law enforcement.
The allegations against Sarris have not been proven.