Deaf organization sues over lost money

The fate of a community center for the deaf could be in jeopardy because the organization raising funds for the project fell victim to the closure of Silver State Bank, according a complaint filed in federal court this week.

The nonprofit organization Las Vegas Deaf Seniors filed a lawsuit against the Federal Deposit Insurance Corp. and Silver State after losing half of the $250,000 it raised for an upcoming national conference and a social center for the community's deaf citizens.

"We are one of the few metropolitan areas that have no such thing for our deaf community," said attorney Marina Kolias, who represents Deaf Seniors. "Any additional money that came back after paying off the convention was going to go toward the center."

The complaint points blame at bank employees who rejected a request by two Deaf Seniors members to have a sign language interpreter present when representatives of the organization visited a Silver State bank to discuss opening certificate of deposits.

Whether the bankers were ill-informed about insurance coverage or confusion arose by passing notes back and forth, somehow the Deaf Seniors were provided bad information that ultimately led to their losses, Kolias said.

"They were told, 'No, no, no. We can do this all in writing,'" Kolias said. "This is something, as an advocate for the deaf, I see all the time. They are treated unequally. That (passing notes) is not effective communication."

Two Deaf Seniors members visited Silver State Bank in April, believing advertisements that its interest rates were higher than the organization's original banker, Wells Fargo Bank. Kolias said they were told their accounts would be FDIC-insured if they did not exceed $100,000 each.

Kolias said that is not the case and the bank knew it. The insurance covers multiple accounts under $100,000 only if they are filed under different tax identification numbers.

Silver State folded in September, and Deaf Seniors learned that about $250,000 deposited with the bank was insured for only $100,000.

"The bankers knew or should have known they needed an interpreter, they knew or should have known they needed separate tax I.D. numbers and they knew or should have known they were going under," Kolias said.

The organization, which serves as a social network for Southern Nevada's deaf population, began its fundraising efforts more than three years ago, holding small events like bake sales and flea markets. Its goal was to cover the cost of the June 9 convention for Deaf Seniors of America at the Paris hotel-casino. Their second mission was to build their community center.

The FDIC is named in the lawsuit, which claims consumer fraud and negligence, because it became Silver State's receiver when the bank folded. In October, the FDIC ruled that the organization was insured for $100,000, a determination that Kolias called "incorrect, wrong and contrary to law."

Kolias said her clients did not hold onto the notes that outlined the conversation between Deaf Seniors and Silver State officials. She holds little hope that the bank did either.

"Sometimes they're in the bank file; sometimes they're not. I'm sure in this case, they're not."

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-384-8710.