Hypnotist withdraws bank lawsuit

By Steve Green

Saturday, Aug. 29, 2009 | 12:09 p.m.

Las Vegas success seminar trainer and hypnotist Marshall Sylver has withdrawn his lawsuit against a bank over real estate loans and is attempting to resolve the dispute out of court, his attorney said Saturday.

Sylver and three of his companies charged in a lawsuit filed Tuesday in Clark County District Court in Las Vegas that he was defrauded in two real estate loans from Regents Bank N.A. in 2008.

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

Court records show the plaintiffs filed a motion for a temporary restraining order against the bank Tuesday, but that the motion was withdrawn Thursday.

The lawsuit has been voluntarily withdrawn and Sylver is attempting to negotiate a resolution of the dispute, attorney Bart Larsen of the firm Rosenfeld Roberson said Saturday.

The lawsuit alleged 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 said that last March, Sylver sought a $3.045 million loan for a home on Olivero Avenue in Las Vegas.

The suit said 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.

The lawsuit said that after obtaining the home loan, but before learning it was a one-year business loan, Sylver 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 said 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 said in the suit, 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 said.

Now, Sylver's lawsuit said, 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 said.

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.

``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 charged.

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.

The defendant in that case, Executive Jet Management Inc. of Cincinnati, has not yet filed a response in court to Sylver's claims.