No Mobile Homes Were Bought: Austin CEO Settles SEC Case Over Alleged $9.6 Million Wavemark 'Guaranteed Return' Offering

Published Oct. 12, 2026. Case statuses are current as of that date. This article is based only on documents published by the U.S. Securities and Exchange Commission.

The idea sounded tangible: buy mobile homes, install them in parks, and pay investors from the rent and sales. According to the Securities and Exchange Commission, not a single mobile home was purchased.

On Sept. 21, 2026, the SEC filed settled charges in federal court in Texas against Wavemark Capital, LLC and its founder and CEO, Michael Ayala of Austin, Texas, alleging a $9.6 million fraudulent offering [1][2].

Important: Ayala and Wavemark agreed to settle without admitting or denying the SEC's allegations. The proposed judgments require court approval.

The offering

According to the SEC [1], from about October 2021 through February 2025 Wavemark Capital and Ayala raised about $9.6 million from nearly 100 investors through Wavemark Income Fund, LLC. The investments were sold as promissory notes, which the SEC treats as securities.

Investors were allegedly told that:

• their money would be used to buy mobile homes;
• the newly purchased homes would be installed in parks owned by affiliate entities controlled by Ayala; and
• they would receive guaranteed annualized returns of 12% to 14%, paid from rental payments and mobile home sales.

What the SEC alleges happened

The SEC alleges the defendants "did not purchase any mobile homes" [1]. Instead, according to the release, investor money was:

• used to make Ponzi-like payments to earlier investors; and
• otherwise misappropriated to pay sales commissions and debts and operating expenses of Ayala's affiliate entities.

In other words, the SEC says, the returns investors received were not coming from the homes, because there were no homes.

Why "guaranteed" and "real asset" claims deserve scrutiny

Investments tied to physical assets, such as real estate, mobile homes, equipment or livestock, can feel safer than stocks because you can picture the thing you're buying. But you usually can't see whether your particular dollars bought anything. A legitimate operator should be able to show titles, serial numbers or purchase records for the assets your money funded, and should explain where the "guaranteed" return comes from if the assets don't perform.

Note-based offerings also often pay sales commissions, which the SEC says happened here. Commissions aren't illegal in themselves, but when undisclosed or paid out of investor principal they can leave less money for the promised investments.

The settlement

Without admitting the allegations, Wavemark Capital and Ayala consented to final judgments, subject to court approval, that would [1]:

• permanently enjoin them from violating the antifraud provisions of the Securities Act and Exchange Act;
• order them to pay $8,817,909 in disgorgement and $736,725 in prejudgment interest, jointly and severally; and
• as to Ayala, impose a conduct-based injunction and a civil penalty of $236,451.

The case is SEC v. Michael Ayala and Wavemark Capital, LLC, No. 26-cv-02599, U.S. District Court for the Western District of Texas. The release does not mention a parallel criminal case [1].

Note: The SEC complaint PDF did not convert to readable text for our review, so this article relies on the SEC's litigation release for its description of the allegations.

What "settled, subject to court approval" means

This is a civil case brought by the Securities and Exchange Commission, not a criminal prosecution. The SEC cannot send anyone to prison; it asks a federal judge for orders such as injunctions, repayment of allegedly ill-gotten gains (called disgorgement), interest on that money, civil penalties and industry bars.

In a settled action, the defendant agrees to a proposed judgment without admitting or denying the SEC's allegations. That is not a finding of liability by a court, and it is not a criminal conviction. A proposed judgment also does not take effect until a judge signs it. As of Oct. 12, 2026, we have not confirmed whether the court has entered the judgment described below. If it has, we will update this article.

Red flags to watch for

• "Guaranteed" double-digit returns from rent or sales.
• No proof your money bought the asset: ask for titles, serial numbers or purchase records.
• Affiliated companies on both sides of the deal (the fund lends to, or buys from, entities the same CEO controls).
• Sales commissions paid from investor money.

What to do if you invested

1. Keep every record: account statements, promissory notes, subscription agreements, emails, texts, wire confirmations and screenshots of websites or videos.
2. Report it to the SEC at sec.gov/tcr.
3. Check who you are dealing with. Before investing, search the person and firm on the SEC's Investor.gov adviser search and FINRA's BrokerCheck.
4. Beware of "recovery" offers. People who lost money in investment frauds are often contacted by scammers who promise to recover it for an upfront fee. Government agencies and court-appointed receivers do not charge victims to file claims.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status as of Oct. 12, 2026	Source
Michael Ayala, Austin, Texas	U.S. District Court, W.D. Tex. (No. 26-cv-02599)	Settled SEC civil action filed Sept. 21, 2026, without admitting or denying; proposed judgment ($8.82M disgorgement + $736,725 interest joint and several; $236,451 penalty) subject to court approval	[1]
Wavemark Capital, LLC	Same	Same settlement (joint and several disgorgement); subject to court approval	[1]

Statuses can change. An SEC complaint contains allegations, and a settlement without admitting or denying them is not a finding of wrongdoing.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26643, "SEC Files Settled Action Against Mobile Home Park Company and its CEO in Alleged Fraudulent Offering," Sept. 21, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26643
2. SEC complaint, SEC v. Michael Ayala and Wavemark Capital, LLC, No. 26-cv-02599 (W.D. Tex. filed Sept. 21, 2026). https://www.sec.gov/files/litigation/complaints/2026/comp26643.pdf

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, a court ruling on a proposed judgment, or any other change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.