A settlement conference ordered by a federal judge failed to resolve differences between state licensing authorities and two dentists they have accused of trading drugs for sex.

"The parties were unable to reach a settlement in this case," said the memo from Judge A. Sherman Christensen to Judge Aldon J. Anderson, who had recommended the conference.Anderson had hoped attorneys for dentists Kent Blaine Hansen and Brent D. Hansen would settle some or all of their differences with counsel for the state Division of Occupational and Professional Licensing and its director David Robinson - thereby saving some time and expense.

The Hansens, twin brothers with practices in Midvale and Spanish Fork, have sued the state in federal court to halt licensing action against them. The dentists said they can't get a fair hearing before the state dental licensing board because of the division's disciplinary procedures and an alleged bias against them by Robinson.

Hearings on the Hansen's request for an injunction against the state's proceedings will continue Oct. 4.

"We just go forward and do the best we can," said assistant attorney general David Lund, when asked for his opinion of the confidential settlement conference and continued delay of the licensing hearing.

Court documents indicate the settlement conference was initially requested by the Hansens, and Anderson's agreement to hold a conference appeared to frustrate state officials who wanted to keep moving on the case.

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The Hansens' case is a top priority for the division. But it has run into several snags since it was filed more than two years ago.

The first problem arose after the state filed an emergency suspension along with a petition against the Hansens in August 1989, accusing the twin brothers of trading drugs for sex with one patient and other instances of sexual misconduct, Medicaid fraud and substandard dental care.

In federal court, the Hansens sued the state over the suspension and collected $23,000 in damages. Then the state's key witness refused to cooperate until this past spring, when depositions were finally taken and a licensing hearing scheduled.

But the hearing was indefinitely postponed when the Hansens filed their second federal action against the state.

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