I'm having this issue as well, but maybe slightly different.
First of all, I do not use Verizon Location Services, I only use Google and occasionally GPS when I need to be very accurate. My Rezound has been saying "Montreux" lately, which happens to be in Switzerland, where I was on my honeymoon three weeks ago.
The strange thing is I have just purchased a Motorola Xoom (Verizon 3G version), and it is telling me my location is Montreux, Switzerland as well. And though this is the Verizon 3G version, I am using only wifi.
It seems almost as if Google has cached my location somehow, as I can't think of any other reason this new tablet (which I did not even own at the time I was in Switzerland) would tell me I'm in Montreux.
I've tried turning on different location services and turning off others, and have been able to temporarily display my real location, but after a while it always reverts back to Montreux.
Any ideas here? Is there some location cache that can span multiple devices? Neither my Xoom nor my Rezound are rooted. Not really sure how to resolve.