Austin podcast host Mike Ayala has agreed to pay more than $9.7 million to settle Securities and Exchange Commission fraud charges over an investment fund that promised fixed annualized returns of 12 to 14 percent, according to a civil action filed September 22, 2026, in the U.S. District Court for the Western District of Texas. Regulators say his firm, Wavemark Capital, never purchased a single manufactured home for the fund it claimed to back.
What happened
Ayala, host of the Investing for Freedom podcast and chief executive of Wavemark Capital, raised roughly $9.6 million from about 100 investors across at least five states between October 2021 and February 2025. The money funded the Wavemark Income Fund LLC through promissory notes carrying a $50,000 minimum investment per person.
Investors were told their money would buy manufactured homes for placement in mobile-home parks. Each note, the pitch claimed, carried a first-lien position protecting the loan. The SEC complaint alleges those claims were false.
Key facts in the Wavemark case
| Metric | Detail |
|---|---|
| Total raised | Approximately $9.6 million |
| Investors affected | About 100 across at least five states |
| Promised returns | 12 to 14 percent annualized, fixed |
| Minimum investment | $50,000 per promissory note |
| Manufactured homes purchased | None, according to the complaint |
| Funds diverted to affiliates | Approximately $8.7 million |
| Paid to earlier investors | $795,485 in Ponzi-style distributions |
Where the investor money went
Federal investigators found that Wavemark diverted approximately $8.7 million of the roughly $9.6 million raised to cover debts and operating expenses tied to Ayala’s other business entities. Only $795,485 flowed back to earlier investors as distribution payments, a structure the complaint describes in terms consistent with a Ponzi scheme.
The Wavemark Income Fund held no purchased assets and generated no actual investment returns, according to regulators. Investor funds remained under Ayala’s sole control from start to finish. The SEC says investors lost the majority of their money.
The proposed settlement
Under the consent agreement, Ayala and Wavemark would pay approximately $8.8 million in disgorgement plus interest, while Ayala personally would pay a $236,451 civil penalty. The deal still requires approval from U.S. District Judge Robert Pitman in Austin before it becomes final.
Ayala has not admitted wrongdoing. Both defendants agreed not to offer or sell securities again.
The complaint charges violations of Section 17(a) of the Securities Act of 1933, including provisions that can be established by negligence, along with Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934.
Red flags in the Wavemark pitch
- Fixed double-digit returns: Promises of 12 to 14 percent annualized returns with no downside described sit far above what investment-grade bonds pay.
- Hard-asset claims without proof: The notes supposedly carried first liens on manufactured homes that were never purchased.
- Audience mistaken for a track record: A podcast following is a marketing channel, not a registered performance history.
- Sole custody of funds: One operator controlled the cash with no independent custodian verifying results.
What affected investors can do now
Investors who funded the Wavemark Income Fund should gather every note, statement, and wire confirmation they received. Court-supervised recoveries run on documentation, and complete records make claims easier to substantiate.
Victims should also watch for notices about the settlement approval hearing and any claims process. Until the judge signs off, nothing is final.
Anyone who invested through a retirement account should contact the account custodian to document the loss for tax reporting purposes.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
