Carole A. Liston

What the public record shows

Carole A. Liston is an investment adviser who was the subject of an SEC enforcement action (Investment Advisers Act Release IA-6950, March 3, 2026), following a consented final judgment in the U.S. District Court for the Southern District of Florida. She settled without admitting or denying the SEC’s findings, except as to the Commission’s jurisdiction and certain facts she admitted. The SEC record does not state a criminal conviction.

What the SEC found

According to the SEC, Liston:

• Misappropriated her advisory clients’ assets and misrepresented the nature and value of their investments;
• Provided false account statements indicating that clients’ funds were fully invested and earning returns;
• Misrepresented her trading success and her use of client assets, including her use of margin; and
• Told investors they could regularly withdraw profits while concealing that she had not invested the majority of the funds — a pattern that echoes the mechanics of a Ponzi scheme.

Why we rate this 2 / 10 — Avoid

An adviser found by the SEC to have misappropriated client money and fabricated account statements sits at the core of what an advisory relationship is supposed to prevent. Because this was resolved as a settled regulatory/civil matter rather than a criminal conviction, we note that distinction — but the findings go to the heart of trust.

Verify it yourself

• SEC order IA-6950 — linked in Sources.
• SEC IAPD (adviserinfo.sec.gov) — the adviser’s Form ADV and disciplinary disclosures.
• PACER — the SEC’s civil case in the Southern District of Florida.

Bottom line

The SEC found misappropriation and falsified statements, and a court entered judgment. Statements should come from an independent custodian — never solely from the adviser who holds your money.

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