O.C.’s Mystik Magik Sees Court Battle in Its Future

Someone should have seen this one coming.

An Anaheim company that trained hundreds of Tarot card readers for a 1-900 phone service filed suit this week claiming it was forced out of business by its Florida contractor after being featured in a critical news report on telephone psychics.

Mystik Magik said its “expanding” business was destroyed after Ft. Lauderdale-based Psychic Readers Network abruptly switched off the Orange County company’s phone bank, according to a lawsuit filed in Orange County Superior Court.

Mystik Magik trained more than 700 Tarot card readers who spent hundreds of thousands of hours on the phone looking into callers’ futures for the Florida business, the suit said. The small company, which also ran a New Age bookstore, received a percentage of the $3.99-a-minute charge assessed to callers who use the 1-900 phone number.

Owners Steve and Faith Groves are seeking up to $7 million in damages from the Psychic Readers Network, which runs telephone psychic services in several states including California, according to the 23-page lawsuit filed Tuesday.

Peter Stolz, spokesman for the Ft. Lauderdale-based company, said the company does an “excellent job” and that the lawsuit “doesn’t sound like a big deal.”

Exact numbers are difficult to come by, but industry observers say Psychic Readers Network is part of a booming business that takes in hundreds of millions of dollars annually. Television ads for psychic hotlines usually run late at night, and while they claim to be for entertainment only, offer psychic assistance on personal and financial issues.

“The growth has been astonishing,” said Dennis Rook, a clinical marketing professor at USC. “It’s an example of people searching for spirituality. Sometimes, the avenues are conventional. Sometimes, they are kooky.”

Without disclosing any figures, the Groveses’ attorney said Mystic Magik’s business was profitable until the Florida company stopped referring calls to the Anaheim firm--a move that caught his clients by surprise.

“The business was becoming successful,” said Irvine attorney Harri J. Keto, who would discuss few details of the case. “Now, they’re ruined.”

The suit, which alleges breach of contract and fraud, among other things, also names Telemagic Consultants Inc. of San Diego, which lines up subcontractors for the Psychic Readers Network.

Mystik Magik’s owners were unavailable for comment, but a former Tarot card trainee said Thursday she was saddened by the company’s closure. The Garden Grove resident, who asked to remain anonymous, said she attended about seven hours of classes at Mystik Magik to learn Tarot card reading.

The woman, who works as an independent contractor for defendant Telemagic, said she has studied metaphysics for more than 20 years and believes Tarot cards can assist people in making critical life decisions ranging from finance to love.

“I don’t how it works,” she said. “All I know is it just works.”

The Tarot card reader said many callers are really just reaching out for a friendly voice.

“People call the [psychic telephone] network, because they are lonely and they have no one to talk to,” she said. “We can’t solve their problems. We aren’t gods and we aren’t psychiatrists. We are there to listen and that’s what we do.”

Earlier this week, the Groveses posted a note on the doors to their bookstore and training center.

“Mystik Magik will close its doors for good on Dec. 11,” it read. “We cannot thank you all enough for all of your encouragement, dedication and support. You all have done a great deal to help us stay open. I wish, somehow, someone would have listened to your words.”

Also contributing to this report was Times correspondent Debra Cano.

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How Psychic Hotlines Work

* Caller dials hotline 900 number

* Call is directed to one of hotline’s psychic subcontractors, who talks with caller and provides advice

* Charges of $3.99 per minute billed directly to caller’s phone bill or credit card

* Proceeds shared by hotline, subcontractors and caller’s telephone company

Source: Times reports