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Bankruptcy Fraud: Lenny Dykstra Pleads Guilty to 3 Counts

Posted By admin || 6-Jul-2012

Bankruptcy Fraud: Lenny Dykstra Pleads Guilty to 3 Counts

Lenny Dykstra, former New York Mets outfielder, pled guilty this week to bankruptcy fraud counts in Los Angeles, according to federal prosecutors. Dykstra faces 3 counts of fraud that includes money laundering and concealment of assets.  He may face up to 20 years in prison, yet his court date for sentencing has yet to be announced.

Three years ago, Dykstra purchased a mansion that was previously owned by Wayne Gretzky.  This took place around the time Dykstra filed for bankruptcy.  In his filing he claims he had outstanding debt of more than $30 million but says he had only $50,000 in assets.  According to investigators, Dykstra destroyed, sold or hid assets that were valued at more than $500,000.  The bankruptcy trustee did not grant permission for any of these actions.

Officials discovered Dykstra gave false and misleading details about what he did with personal assets from his home.  Prosecutors found out he sold several household items and received over $8,000; items sold included an oven and chandeliers.  He lied and claimed such items were in a storage locker.  Officials also learned he hid numerous baseball memorabilia items including bats, gloves and balls from the court.  Creditors obtained the items and sold them for roughly $15,000.

Dykstra is currently serving a 3-year prison term for providing false financial details and grand auto theft, in which he plead no contest.  He recently was sentenced to 9 months in prison for exposing himself to women through Craigslist; he also pled no contest to the charges.

Categories: Bankruptcy Fraud
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