December 20, 2012

All-Star Former New York Mets Baseball Star Convicted of Bankruptcy Fraud

On December 3, Lenny Dykstra, former all-star outfielder for the New York Mets, was sentenced to 6 ½ months in federal prison. This followed his guilty plea to three felony counts,  which included bankruptcy fraud, concealment of assets and money laundering to which Prosecutors were seeking a 2 ½ year sentence.

Mr. Dykstra filed for Chapter 11 Bankruptcy on July 7, 2009.  All of his assets at the time became part of his bankruptcy estate.  Mr. Dykstra admitted to removing and selling items from his $18 million dollar mansion.  Prosecutors in the case said that Mr. Dkystra either hid, sold or destroyed over $200,000.00 of assets without the Bankruptcy Court’s permission.  In his bankruptcy petition and schedules he listed assets of over $24.6 million dollars including two houses — one in Ventura County, CA which he purchased from hockey legend, Wayne Gretzky and another in Westlake Village, CA.  He listed his debts exceeding $37.1 million dollars. Mr. Dykstra’s personal property was supposed to be used to pay off his creditors including fixtures from his houses, chandeliers, baseball memorabilia, all items he hid in either storage units or sold for cash and kept the proceeds.  Mr. Dykstra will also have to perform 500 hours of community service and pay $200,000.00 in restitution.

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Posted In: Bankruptcy