Axelrod Assumes Helm of Prepaid Dental Care Firm
Arthur D. Axelrod, a Santa Ana businessman who has built sometimes controversial careers in real estate, banking and the salvage business, has now been named president of National Health Care Systems Inc., an Irvine operator of prepaid dental plans.
As president, Axelrod replaces U.T. (Tommy) Thompson, who along with Axelrod was a founder of Newport Beach-based Pacific National Bank. Both men acquired stakes in the struggling dental plan in May, with Thompson replacing William Hornbaker as its president and chief executive.
Axelrod, who described his foray into the dental care industry as “strictly business,” refused to disclose how much of the company he and Thompson hold, or how much they paid for their stakes.
In the early 1980s, Axelrod raised millions of dollars through his Trans Atlantic Bankcorp. from investors who were later bilked of their funds by convicted swindler J. David Dominelli. Trans Atlantic funneled money from investors to the San Diego-based investment adviser. Dominelli is now serving a 20-year prison sentence for fraud and tax evasion.
Malpractice Suit Filed
In July, Axelrod filed a malpractice suit in Orange County Superior Court, charging that his attorney, Richard Bruck, was responsible for the losses because he allegedly advised him that Dominelli’s investment strategies complied with state and federal laws. Axelrod is seeking $19.7 million in damages plus $10 million in punitive damages for alleged fraud.
National Health, which has about 60,000 members, primarily in Southern California, operates the “Denticare” and “Mission Dental Health” prepaid dental plans in California and a similar operation in North Dakota.
During the six months ended June 30, National Health reported net earnings of $55,601, contrasted with a year-earlier loss of $55,421. Revenues during the first half increased 16% to $2.1 million from $1.8 million.
National Health Care common stock has been trading over the counter in the 50-cent-per-share range recently.
