I just ran into the same problem in CryEngine 3 and I was wondering, if you managed to make the entity solid?
edit: ok, nevermind. Seems like I found a workaround in my case.
params.pClass = gEnv->pEntitySystem->GetClassRegistry()->FindClass("BasicEntity");
Did the trick for me. But only that's for Cryengine 3 of course and not really a great solution