United Dental Care to Contest Securities Department Claims

By Robinson, Robin | THE JOURNAL RECORD, February 7, 1989 | Go to article overview

United Dental Care to Contest Securities Department Claims


Robinson, Robin, THE JOURNAL RECORD


United Dental Care Inc. on Monday denied allegations of violating state securities laws.

The firm claimed it was only following the advice of its attorney, a former Oklahoma Securities Department lawyer.

The Oklahoma City firm and its president, Charles Montgomery, were cited in the department's Feb. 1 notice of intent to suspend a local brokerage's license, the license of the brokerage's principal and the license of a former broker.

On Wednesday, Gary Bryant, the principal, denied any wrongdoing by his brokerage, Anderson Bryant & Co. The broker, Larry Phillips, has also denied the allegations and is no longer in the securities industry.

"The company, its officers and directors had relied upon the advice of their securities counsel in conjunction with the transactions and cooperated fully with the securities department in their investigation," United Dental said Monday.

The lawyer hired by United Dental, John R. Thompson, had been legal counsel for the department before he went into private practice, Montgomery said, and was hired only for the securities transaction.

The department action was taken in connection with investigations relating to an offering of United Dental's stock in 1985, its merger with Mega-Plex Inc. in 1986, and other securities transactions.

Montgomery said his company does plan to ask for a hearing before a department hearing officer. …

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