The Securities and Exchange Commission (SEC) has filed a lawsuit against Stock Purse Trading, LLC, Liston Associates, Inc., and their owner, Carole Liston.

The complaint, submitted at the Florida Southern District Court, on August 18, 2025, alleges that Stock Purse Trading, Liston Associates, Inc, and their owner, Carole Liston, conducted a fraudulent securities offering by falsely promising to pay investors exorbitant monthly returns based on Liston’s purported stock trading strategy and expertise.

According to the SEC’s complaint, from at least August 2020 through July 2024 (the “relevant period”), the defendants raised approximately $5.7 million from more than 200 investors nationwide, purportedly to fund defendants’ stock trading activities in violation of the anti-fraud provisions of the federal securities laws.

Liston falsely promised monthly returns ranging from 5% to 20% and claimed to double investors’ money within 30 to 60 days. Liston also claimed that she could generate profits of 350% in one year by pooling investor funds in brokerage accounts and investment “funds” she managed.

To lure investors to invest in the investment opportunity, Liston touted her purported investment experience and success in trading for her own accounts, her expertise in investing in options, and proprietary trading algorithm for short selling stocks. Liston falsely told investors that SPT would pool investor funds to achieve better returns and misrepresented to investors the safety and security of her investment trading strategy.

Liston also created false online account summaries showing outstanding fictitious returns, lulling investors who accessed their accounts through SPT’s website.

In reality, Liston only used a small portion of investor funds to purchase and trade securities and, when she did, her trading produced significant losses. Liston misappropriated at least $450,000 of investor funds for her personal benefit, and used at least $3.9 million in investor funds to make Ponzi-like distributions to SPT investors.

The SEC accuses the defendants of violations of Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)]; Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)], and Exchange Act Rule l0b-5 [17 C.F.R. § 240.10b-5]. Liston also violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”) [15 U.S.C. § 80b-6(1) and (2)].

Among other relief, the SEC seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties against the defendants.