Posted February 08, 2018 07:19:25 The dentist at the center of the biggest financial scandal in the state’s history is now a billionaire, after he became the latest dentist to buy out rivals and take control of a lucrative practice that once paid him $1,500 an hour.
Dr. David M. Brown, who was the dentist at his East Orange, N.J., office, was sued in May by his former dental assistant, who said Brown had made her feel unwanted after they broke up and he failed to pay her.
Brown sued in Manhattan federal court, alleging that his former assistant was fired after she complained that he did not pay her a salary.
The two worked together for three years and then began a partnership, according to court papers.
Brown has denied any wrongdoing.
The case has drawn comparisons to the one that rocked the United States in the early 2000s, when former President George W. Bush sued former Attorney General Janet Reno over her decision to fire several public sector workers after the Sept. 11, 2001, terrorist attacks.
Brown’s lawsuit contends the fired workers did not get the promotions they deserved.
Brown is among a handful of dentists who have stepped up to take on the payday-loan business, which can rake in up to $1 million in fees for a practice that was once billed as an efficient and cost-effective way to get patients back to their homes.
Brown sold his practice in August for $4,000 a month, according a company spokesman, and has since become the second-richest dentist in New Jersey, after former New York City Mayor Michael Bloomberg.
He also became the biggest dentist in California, with a practice at the Golden State’s Mission Valley, a community of 1.2 million people near San Francisco.
Brown says he now makes $1.3 million a year, or about $100,000 less than his previous income, but that the loss of income has forced him to sell his practice.
Brown filed his lawsuit in federal court in California last month.
Brown began practicing dentistry in 1985.
He left the practice in 2008 after a four-year stint as president of the Association of New Jersey Dental Associations, a group representing dentists.
He also was the chairman of the association for several years before he resigned.
Marlene Hoch, Brown’s attorney, said Brown is a highly skilled, well-known and well-respected dentist and has never been a bully.
“The case is very well-founded,” Hoch said.
“He is not a bad person, he’s just a very well known and respected person.”
Brown said he had been contacted by an acquaintance in his dental office who was in the process of buying out another dentist who had previously paid him a fee for work he had done.
Brown said the two spoke about the sale, which he said was confidential, and that the dentist had agreed to pay him $4 million for the practice.
The dentist has no immediate plans to retire, but he said he will take a pay cut to give himself more time to prepare.
He will also sell his company to an investor, Hoch wrote.
In New York, where Brown is chairman of a state-run dentistry trust, the board is expected to approve the sale of Brown’s practice.
New York Attorney General Eric Schneiderman said the sale would be a good way to reduce the financial burden on families, especially those with low incomes.
State health officials have already said they will not pursue criminal charges against Brown for the alleged misconduct, but the attorney general’s office is considering whether to file charges.
Brown said the practice was a business venture he took on after he was laid off from his job as the dental assistant in 2009.
He said he was not paid for any work he did and never had to disclose any of his work to the state.
When he was hired by Brown, the dentist said, he was a certified public accountant and he had no idea that the practice would eventually become a cash cow.
He had never done any consulting or auditing before, Brown said.
By the time he resigned in 2015, Brown had amassed a $3.6 million profit and was in his second year at the dental practice, according the state board’s filings.
His practice is now run as a limited liability company, which allows him to hire more staff, which is why Brown is the biggest individual earner in the industry, according it filings.
Brown also runs a dental insurance company, and he and his wife run a dental training school for dentists in the Bronx, according his filings.
Brown’s practice has been a profitable enterprise for more than a decade, though it is not known how much revenue he made from his practice or how much he is expected by the state to spend on his dental care.
A spokesman for the state Board of Dentistry did not respond to a request for comment.Brown and