Anyone Else Following the SEC Action Involving Carole Liston’s Investment Firms?

[Tom Harris]

Hey everyone, I came across this story and have been trying to piece together what’s publicly known versus speculation, so I wanted to start a thread. There’s a Securities and Exchange Commission complaint filed in the Southern District of Florida naming Stock Purse Trading LLC, Liston Associates, Inc., and their owner Carole A. Liston. According to the SEC’s litigation release and complaint, these entities raised about $5.7 million from more than 200 investors by promising high monthly returns and touting a proprietary trading strategy. The SEC alleges the firms weren’t registered as investment advisers or properly registered for the offerings, and the complaint says that only a small portion of the funds actually went into trading while larger amounts were used to make distributions that looked like returns to earlier investors. The public filings seek injunctive relief, disgorgement, and civil penalties, and the docket shows judgments entered in favor of the SEC in September 2025. Nothing in the publicly available docket or enforcement release is a court finding of criminal guilt, but the civil case details what the SEC alleges. I’m interested in hearing people’s take on how these kinds of cases unfold, what red flags might have been present, and how investors can better vet opportunities in the future.

 

[Jack Miller]

Hey everyone, I came across this story and have been trying to piece together what’s publicly known versus speculation, so I wanted to start a thread. There’s a Securities and Exchange Commission complaint filed in the Southern District of Florida naming Stock Purse Trading LLC, Liston Associates, Inc., and their owner Carole A. Liston. According to the SEC’s litigation release and complaint, these entities raised about $5.7 million from more than 200 investors by promising high monthly returns and touting a proprietary trading strategy. The SEC alleges the firms weren’t registered as investment advisers or properly registered for the offerings, and the complaint says that only a small portion of the funds actually went into trading while larger amounts were used to make distributions that looked like returns to earlier investors. The public filings seek injunctive relief, disgorgement, and civil penalties, and the docket shows judgments entered in favor of the SEC in September 2025. Nothing in the publicly available docket or enforcement release is a court finding of criminal guilt, but the civil case details what the SEC alleges. I’m interested in hearing people’s take on how these kinds of cases unfold, what red flags might have been present, and how investors can better vet opportunities in the future.

I just read the SEC release and the docket entries. From what I can tell, the case was a civil enforcement action and there are judgments listed in the docket reports against Stock Purse Trading, Liston Associates, and Carole Liston in favor of the SEC. I’m not a lawyer, but it seems like the SEC’s complaint laid out the basis for the civil claims, including alleged violations of securities laws, and the court entered judgment on those. It doesn’t look like criminal charges were part of this public record. For folks trying to avoid trouble, checking adviser registration and any SEC filings before investing seems like a good move.

 

[Amelia Bennett]

I just read the SEC release and the docket entries. From what I can tell, the case was a civil enforcement action and there are judgments listed in the docket reports against Stock Purse Trading, Liston Associates, and Carole Liston in favor of the SEC. I’m not a lawyer, but it seems like the SEC’s complaint laid out the basis for the civil claims, including alleged violations of securities laws, and the court entered judgment on those. It doesn’t look like criminal charges were part of this public record. For folks trying to avoid trouble, checking adviser registration and any SEC filings before investing seems like a good move.

Thanks for that breakdown. I wasn’t sure if the docket meant there’d been a criminal indictment or something beyond the SEC’s civil action. It’s helpful to see the distinction in the public filings that the enforcement release and the complaints are civil in nature and that the judgments refer to that. For anyone watching these kinds of cases, I’d also recommend using the SEC’s EDGAR or enforcement pages to confirm adviser registration and see if there are litigation releases tied to a name before considering an investment opportunity.