A Florida advisor and her firms are under fire from the SEC, which claims they broke federal securities laws by raising $5.7 million from investors with promises of sky-high returns.
Stock Purse Trading LLC, Liston Associates, Inc., and Carole A. Liston are at the center of the SEC’s newly filed complaint in the Southern District of Florida. According to the regulator, Liston and her companies pitched investment programs nationwide, touting monthly returns of 5% to 20% and even telling investors she could double their money in as little as 30 to 60 days. The SEC says Liston promoted her trading know-how and a proprietary algorithm, while offering three programs: the Growth Fund, the Income Fund, and the Family Fund.
But the SEC alleges those promises ran afoul of the law. The complaint claims Liston and her firms violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act. The SEC says only a fraction of the $5.7 million raised was actually invested, with most trades losing money and at least $3.9 million of new investor funds used to pay earlier participants. The agency also claims Liston misappropriated at least $450,000 for personal expenses, including real estate and luxury items.
Liston, 61, is listed as the founder and CEO of both companies. The SEC says neither she nor her firms were registered to provide investment advice, and that investors had no control over their funds once they wired money in. The complaint details how Liston allegedly provided investors with online account summaries showing big, but fictitious, profits. In one case, an investor’s account summary listed a $395,000 investment as having grown to $981,000, while brokerage records showed less than $2,000 in the account at the time.
The SEC also claims Liston failed to disclose the use of margin trading or its risks. Investors first learned about margin use in the summer of 2023, after Liston’s group failed to return principal investments and posted a notice about a brokerage account deficit.
The SEC is seeking permanent injunctions, disgorgement, and civil penalties. At this stage, these are only allegations in a civil complaint. The defendants have not yet responded in court, and there have been no findings of liability.
The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.
IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.
Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.
A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.
As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
