Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—S.D. Fla.: SEC charges Florida firms and CEO in $5.7M offering fraud, (Aug 28, 2025)
Organizations Mentioned:Liston Associates, Inc. | Stock Purse Trading LLC
The SEC charged two Florida companies and their CEO with fraud, citing false promises of high returns and misuse of investor funds.
The SEC filed charges in the Southern District of Florida against Stock Purse Trading LLC, Liston Associates, Inc., and their founder and CEO, Carole A. Liston, for conducting a fraudulent securities offering that raised at least $5.7 million from 200 investors across the United States. According to the SEC, the scheme ran from August 2020 to July 2024 and targeted investors with promises of extraordinary returns tied to Liston’s purported stock trading expertise (SEC v. Stock Purse Trading LLC, No. 1:25-civ-81026 (S.D. Fla. filed Aug. 20, 2025)).
The SEC alleges that investors were told their funds would be pooled for options trading and managed with a proprietary short-selling algorithm, with monthly returns ranging from 5% to 20%, or even 100% within two months. In reality, only a small portion of funds was traded, resulting in losses, while at least $450,000 was misappropriated for personal use and nearly $3.9 million was used to make Ponzi-like payments to earlier investors.
Without admitting or denying the allegations, the companies and Liston agreed to a partial settlement that permanently enjoins them from future violations, with the court to determine disgorgement, interest, and civil penalties at a later stage. The settlement remains subject to court approval.
The case is No. 1:25-civ-81026.
Attorneys: Pascale Guerrier for the SEC.
Companies: Stock Purse Trading LLC; Liston Associates, Inc.
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