The SEC has brought a closely watched enforcement action against former Linqto executives William Sarris and Joseph Endoso, alleging they misled thousands of retail investors who used Linqto’s platform to gain exposure to private, high-growth companies before IPO. According to SEC Litigation Release No. 26672, the agency claims the defendants made false or misleading statements about key aspects of the investment opportunity offered through the platform.

The case is notable because Linqto operated in a part of the market that has drawn intense attention from investors, startups, and regulators alike: retail-oriented access to private “unicorn” companies.

The U.S. Department of Justice on July 9 announced prison sentences for Neil Suresh Chandran and Bryan Lee in a sweeping investor-fraud case that prosecutors said caused more than $45 million in losses to over 10,000 investors. According to the government, the defendants promoted false narratives about extraordinary company valuations and imminent buyouts, using those claims to induce investments on a massive scale.

The sentencings are notable not only for the size of the alleged fraud, but also for the victim count.