World Capital Market Inc., the company that owns Glen Ivy Golf Club — the golf course at Trilogy, has been charged by the U.S. Securities and Exchange Commission of operating a worldwide pyramid scheme.

In a March 28 statement, the SEC reported that the company’s assets have been frozen, a temporary receiver has been appointed and that a court hearing is scheduled April 10.

The SEC alleges, “that three entities collectively operating under the business names WCM and WCM777 are posing as multi-level marketing companies in the business of selling third-party cloud computing services, which can include website hosting, data storage, and software support. The entities are based in California and Hong Kong and controlled by “Phil” Ming Xu, who is a resident of Temple City, California.”

The SEC’s complaint, filed in federal court in Los Angeles, alleges, “WCM and WCM777 have raised more than $65 million since March 2013 by falsely promising tens of thousands of investors that the return on investment in the cloud services venture would be 100 percent or more in 100 days. Investors were told they would receive ‘points’ for making investments or enrolling other investors. The points would be convertible into equity in initial public offerings of high-tech companies their money would help launch. However, rather than building out cloud services or incubating high-tech companies, Xu and the WCM entities used investor funds to make Ponzi payments of purported investment  returns to some investors.  They also spent investor money to purchase golf courses and other U.S.-based properties among other unauthorized expenditures.” (Read the entire SEC report HERE)

World Capital Market Inc. purchased the Trilogy course last August for a reported $6.5 million.  A month later the company bought Links at Summerly, the only golf course in Lake Elsinoire, at an undisclosed price.

The charges by the SEC against World Capital Market Inc. should allay the months-long speculation that WCM was negotiating to purchase Glen Ivy Hot Springs owned by Emissaries of Divine Light, a global spiritual network. Emissaries owns the property, and the retreat and conference center, as well as the spa. The organization announced last year that it was moving its California operation to Colorado. (Read the announcement HERE)

As of today, Glen Ivy Golf Club remains open. This report will be updated as new developments occur.