Linqto founder faces charges over alleged $450,000,000 pre-IPO fraud

Federal prosecutors charged Linqto founder William Sarris with fraud and conspiracy offenses. The indictment alleges that Sarris manipulated private-company share prices and imposed excessive markups on customers. Prosecutors allege the scheme ran from 2020 through 2025. Linqto marketed access to stakes in private companies expected to eventually go public. Prosecutors allege Sarris manufactured artificial scarcity and changed Linqto's pricing model while telling customers they were paying market prices. The alleged strategy brought in more than $450 million from over 13,000 customers. Prosecutors allege Sarris sold shares allocated to customer holdings in January 2025 without informing the customers. Linqto filed for bankruptcy by the middle of 2025. Sarris faces two counts of securities fraud, one count of broker-dealer fraud and one count of wire fraud. Each of those counts carries a maximum penalty of 20 years in prison. He also faces conspiracy charges involving securities fraud, broker-dealer fraud, defrauding the United States and unregistered investment company transactions.