The Securities and Exchange Commission has accused a Texas-based fund operator of running a fraudulent investment scheme that raised $9.6 million from nearly 100 investors, with none of the promised mobile homes ever purchased. The complaint, filed September 21, 2026, in the U.S. District Court for the Western District of Texas, names Wavemark Capital, LLC and its founder as defendants.
According to the SEC, the fund's principal launched Wavemark Income Fund, LLC in October 2021, marketing it as "a game changing opportunity." Investors were told their minimum $50,000 contributions would be used to buy new mobile homes from manufacturers, place them in parks operated by affiliated companies, and generate guaranteed annual returns of 12% to 14% through resale profits and lot rents.
The SEC alleges that none of this occurred. Instead, investor funds were used to make $795,485 in "Ponzi-like payments" to earlier investors, pay $62,000 in sales commissions, and cover approximately $8.7 million in debts and operational expenses for affiliated businesses, including payroll, utilities, and distributions to non-fund investors. Money wired by investors was pooled and commingled in a bank account controlled by the fund's principal, who then moved funds to other accounts under his control, cycling some back to pay purported returns.
The complaint also alleges that the defendants faked the security behind the promissory notes. Investors received a "Secured Promissory Note" and signed a first lien security agreement, with assurances that their money was backed by "first-priority liens on newly acquired mobile homes." However, no UCC financing statements were ever filed, and no certificates of origin were obtained. The notes "were not secured by any assets," according to the SEC.
Even as payments began to falter, the defendants continued selling. Beginning in January 2024, investors emailed and texted about missed distributions. Yet during a July 2024 webinar, the fund's principal claimed 21 consecutive months of payments. The fund's website, active until May 2025, advertised 28 months of uninterrupted returns, and salespersons told prospects the fund had "never missed a payment," the complaint states.
Wavemark Capital, a Wyoming LLC based in Sheridan with offices in Austin, Texas, has been administratively dissolved since December 9, 2023. The fund ceased operations in June 2025, and the SEC alleges that the majority of investors lost most of their money. The agency is seeking injunctive relief, disgorgement with prejudgment interest, a civil penalty, and a bar from securities offerings.
This case is part of a broader pattern of SEC enforcement against fraudulent investment schemes. Recent actions include a Texas advisor sentenced to 11 years for a $35 million Ponzi scheme, and a California advisor sentenced to nine years in a $9.5 million scheme. The SEC also recently alleged a $16 million Ponzi scheme targeting Ghanaian Christians in New Jersey.
For financial advisors, this case underscores the importance of due diligence when recommending alternative investments. The SEC's allegations highlight red flags such as guaranteed returns, unsecured promissory notes, and a lack of transparency about fund usage. Advisors should be vigilant in vetting fund operators and ensuring that client investments are backed by verifiable assets.
