Hypnotist sues bank over loans

By Steve Green

Saturday, Aug. 29, 2009 | 2:34 a.m.

Las Vegas success seminar trainer and hypnotist Marshall Sylver says he thought he was getting a good deal on two real estate loans in 2008.

But Sylver says that, unforeseen by him, the bank defrauded him with loans that he's now struggling to pay.

That's according to a lawsuit filed Tuesday in Clark County District Court in Las Vegas by Sylver and three of his companies against Regents Bank N.A.

The lawsuit alleges deceptive trade practices, breach of contract, fraudulent and negligent misrepresentation, violations of the Real Estate Settlement Procedures Act and violations of the Truth in Lending Act.

Executives at San Diego-based Regents Bank were unavailable for comment on the allegations after hours Friday, a bank spokeswoman said.

Sylver's lawsuit, filed by Las Vegas attorney Bart Larsen of the firm Rosenfeld Roberson, says that last March Sylver sought a $3.045 million loan for a home on Olivero Avenue in Las Vegas.

Sylver says he asked for and thought he received a traditional 30-year home loan, but it turns out the loan was a one-year business bridge loan to be repaid in full by April 1 of this year.

Sylver's lawsuit says that after obtaining the home loan, but before learning it was a one-year business loan, he received a second loan in July 2008.

This was a short-term bridge loan for $2.75 million for the purchase of a commercial property on West Charleston Boulevard.

Sylver says in the lawsuit that he intended to renovate the property and move operations of his businesses there from currently rented space.

The problem with this loan, Sylver says, is that Regents provided only the short-term credit for the purchase of the property despite representations it could provide long-term credit for both the purchase and renovation costs.

After Regents was unable to provide long-term financing, it unsuccessfully helped Sylver apply for long-term financing from another bank, the lawsuit says.

Now, Sylver's lawsuit says, he faces higher loan interest costs and costs to maintain the Charleston property -- on top of costs for other locations he intended to relocate there.

And his collateral in both loans is in jeopardy, the lawsuit says.

The collateral includes a $545,000 deed of trust against property on Darby Avenue in Las Vegas, the deed for the Charleston property, deposit accounts with Regents of $2.5 million and $750,000 and loan guarantees issued by Sylver and his company Mind Power Inc.

His other companies named as plaintiffs in the lawsuit are Prosperity Center LLC and Casa de Millionaire LLC.

The suit asks the court to prevent Regents from enforcing any security interest it has in the assets of Sylver and the companies.

``Regents knowingly made false representations to plaintiffs regarding the terms of the first loan and Regents' ability to provide long-term financing in connection with the second loan for the purpose of financial gain,'' the suit charges.

This is at least the second breach of contract lawsuit to be filed by Sylver in Las Vegas this month. Earlier he sued a charter jet company over alleged problems with a 2008 flight between Las Vegas and St. Thomas.