Litigation Releases (Michael Ayala; Wavemark Capital, LLC)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26643/ September 21, 2026

Securities and Exchange Commission v. Michael Ayala and Wavemark Capital, LLC, No. 26-cv-02599 (W.D. Tex. filed Sept. 21, 2026)

SEC Files Settled Action Against Mobile Home Park Company and its CEO in Alleged Fraudulent Offering

On September 21, 2026, the Securities and Exchange Commission filed settled charges in United States District Court for the Western District of Texas against Wavemark Capital, LLC and its founder and CEO, Michael Ayala of Austin, Texas, for allegedly operating a $9.6 million fraudulent offering involving mobile home investments.

The SEC's complaint alleged that, from approximately October 2021 through February 2025, Wavemark Capital and Ayala raised approximately $9.6 million from nearly 100 investors through Wavemark Income Fund, LLC by offering securities in the form of promissory notes. According to the complaint, the defendants promised to use investors' money to purchase mobile homes and install the newly purchased mobile homes in parks owned by affiliate entities controlled by Ayala. As further alleged, the Defendants also promised investors that they would receive guaranteed annualized returns between 12% and 14% through rental payments and mobile home sales. However, as alleged, the defendants did not purchase any mobile homes and misused investor money to make Ponzi-like payments, and otherwise misappropriated investor money to pay sales commissions and debts and operational expenses related to Ayala's affiliate entities.

Without admitting the allegations in the complaint, the defendants consented to the entry of final judgments, subject to court approval, which would permanently enjoin them from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, order them to pay disgorgement of $8,817,909 and prejudgment interest of $736,725 on a joint and several basis, and, as to Ayala, impose a conduct-based injunction and a civil penalty of $236,451.

The investigation was conducted by Kendrack Lewis and supervised by Derek Kleinmann and Jaime Marinaro of the SEC's Fort Worth Regional Office. The litigation was led by Keefe Bernstein.