Angel Oak Capital Advisors Lied to Investors, SEC Takes action

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It has come to light that Angel Oak Capital Advisors (“Angel Oak”) has been lying to their investors, according to the SEC. This revelation has sent shockwaves through the investment community and has called into question the integrity of the firm. Angel Oak has been accused of inflating the value of assets under management, as well as misrepresenting the performance of their portfolios. These allegations are serious and if proven true, could have devastating consequences for the firm.

In March 2018, Angel Oak Capital Advisors, LLC raised $90 million from investors through the first-ever securitization of a pool of “fix and flip” loans. Shortly after the closing of the offering, Angel Oak observed an unexpected increase in the rate of late mortgage payments, or delinquencies, in the underlying pool of “fix and flip” mortgages.

The rising delinquency rate, which continued through 2019, threatened to breach an early amortization trigger in the securitization designed to protect noteholders against losses by requiring early repayment of the investment.

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