SEC accuses fund operator of defrauding investors in $9.6M mobile home scheme

The Securities and Exchange Commission (SEC) alleges a Texas-based fund operator raised $9.6 million - and never bought a single mobile home. 

The SEC filed a complaint on September 21, 2026, accusing Wavemark Capital, LLC and its founder of operating what the agency describes as a fraudulent investment scheme that took in money from nearly 100 investors through promissory notes. 

According to the complaint, filed in the US District Court for the Western District of Texas, the fund's principal launched Wavemark Income Fund, LLC in October 2021, pitching it as "a game changing opportunity." The SEC alleges he told investors their money - a minimum of $50,000 each - would buy new mobile homes from manufacturers, place them in parks run by affiliated companies, and generate guaranteed annual returns of 12% to 14% through resale profits and lot rents. 

None of that happened, according to the filing. The SEC alleges not a single mobile home was purchased with investor money. Instead, the complaint states the defendants used investor funds to make "$795,485 in Ponzi-like payments" to other 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 the fund's principal controlled, according to the complaint. The SEC alleges he then moved funds to other accounts under his control, cycling some back to pay investors their "purportedly guaranteed returns." 

The complaint also alleges the defendants faked the security behind the notes. Investors received a "Secured Promissory Note" and signed a first lien security agreement, with assurances their money was backed by "first-priority liens on newly acquired mobile homes." According to the SEC, no UCC financing statements were ever filed and no certificates of origin were obtained. The promissory notes "were not secured by any assets," the complaint states. 

Even as payments fell apart, the defendants kept selling, the SEC alleges. 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, according to the filing. The fund's website, active until May 2025, advertised 28 months of uninterrupted returns. 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, according to the filing. The fund ceased operations in June 2025. The SEC alleges the majority of investors lost most of their money. 

The SEC seeks injunctive relief, disgorgement with prejudgment interest, a civil penalty, and a bar from securities offerings. 

These are allegations in a complaint. The defendants have not filed a response and no court has ruled on the merits.