Founder of Glen Ivy Quits as CEO : Time shares: Resignation from two top posts comes as state issues order barring sales of Lake Tahoe interests until loan matters are cleared.

CORONA â€”  Ralph Mann, founder of Glen Ivy Resorts, has resigned as president and chief executive of the controversial time-share firm’s parent, Glen Ivy Holdings Inc.

Mann’s resignation last week came just days before the company--already operating under a Dec. 30 court injunction--was slapped with a new state order barring it from selling time-share interests at its Lake Tahoe resort until it clears about $1 million in notes and mortgages on the properties.

On Jan. 9, the company recorded 102 time-share deeds that were sold “without first obtaining proper releases of the blanket encumbrances on the properties,� said Robert McCabe, manager of the state Real Estate Department’s northern region enforcement section.

Basically, the people purchasing time-share interests in the 15 condominium units variously marketed as Glen Ivy’s Tahoe Sands and Golden Sands resorts “didn’t get title free and clear,� McCabe said.

The shares sold for between $8,000 and $10,000 each, and Glen Ivy plans ultimately to sell as many as 765 weeks of time sharing in the 15 units.

A spokesman for Glen Ivy said the company expects to be in full compliance with state regulations within 60 days, with the proper paperwork completed and the titles cleared up.

Mann, a onetime brick mason who started Glen Ivy in 1975 with a single recreational vehicle park in Corona, reportedly stepped down as part of a negotiated settlement with state regulators investigating reports of marketing irregularities at the nation’s largest time-share operator.

He remains chairman of the holding company’s board of directors, however, and still is Glen Ivy’s largest shareholder. A new chief executive has not been selected.

The latest legal action against Glen Ivy involves sales made before state officials obtained an injunction prohibiting the company from using misleading sales tactics and violating a number of state Real Estate Department rules.

Among the original allegations against the company--many still included in an ongoing criminal investigation--are charges that salespeople oversold some of the company’s 24 resorts and that some customers’ deeds were never recorded.

Glen Ivy officials have maintained that the company is innocent of any wrongdoing.

In settling the state’s Dec. 30 claim the same day it was lodged, Glen Ivy agreed to pay $200,000 in fines and fees. Mann agreed to pay an additional $50,000 in fines and costs and, sources have said, also agreed to step down as president and chief operating officer pending the outcome of the ongoing investigation.

The state also appointed a compliance officer, O. Odell Moon, to oversee Glen Ivy operations to make sure the company was following Real Estate Department regulations.

Although the most recent cease-and-desist order was not filed until March 19, it involves actions taken by the company before Moon was appointed.