Troubled Glen Ivy Lays Off 700, May Close Some Offices

CORONA —  Glen Ivy Financial Group, under siege by state and local regulators, has laid off nearly half of its 1,400 employees and contract salespeople as it copes with an ongoing criminal investigation into the business practices of some company officials.

Officials for the nation’s largest seller of time-share resort property said 120 employees were permanently laid off in the last several weeks and about 550 workers were placed on “involuntary unpaid leave.”

It is uncertain when, if ever, those on unpaid leave would be able to return, officials said.

Of the 120 employees permanently laid off, most worked in the administrative and promotional divisions at Glen Ivy’s headquarters in Corona. The majority of those placed on unpaid leave were salespeople.

Company sources said Glen Ivy is considering closing several of its sales sites across Southern California.

Glen Ivy operates sales offices in Newport Beach, San Diego, Woodland Hills and West Covina rather than selling time shares at the company’s resorts.

Some of the company’s critics have charged that the firm pressures customers to buy time-share units before they have a chance to actually visit the resorts of their choice.

The firm operates 24 resorts in eight states, including facilities in Laguna Beach, Palm Springs and Avila Beach.

Glen Ivy officials said the layoffs won’t affect operations at its 24 resorts.

More than 100 law enforcement officials last month raided Glen Ivy after former and current employees alleged that the company oversold some of its resorts and used an elaborate forgery system and secret computer codes designed to fool regulators.

Glen Ivy and related entities last week settled civil charges that they misled customers purchasing time-share contracts. But still pending is a criminal investigation targeting an undetermined number of company officials. The Riverside County grand jury now hearing the case could decide on charges as early as next month, according to Riverside County Dist. Atty. Grover Trask II.

Glen Ivy officials have denied any wrongdoing.