Featured News 2012 Baseball Star Guilty in Bankruptcy Fraud Case

Baseball Star Guilty in Bankruptcy Fraud Case

Lenny Dykstra is considered a star on the baseball field, playing as an All-Star outfielder for both the New York Mets and the Philadelphia Phillies. But off of the playing field, Dykstra has had a few strikes with the law. In the past, the athlete pleaded no contest to a charge of grand theft auto, and was accused of exposing himself to women that he would contact through Craig’s list. Now, he is also in deep water with another criminal strike-out. He hid and sold sports memorabilia that he should have included in his bankruptcy filing. ABC News says that Dykstra filed for bankruptcy three years ago, claiming that he owed more than $31 million to various creditors. He admitted that he had only about $50,000 in assets.

The baseball player bought a mansion that was once owned by the hockey star Wayne Gretzky. Dykstra played baseball for 12 years, but as his career was winding down he ended up in a complicated situation. The star overspent, and determined that bankruptcy was the only way to eliminate his creditors. He then reasoned that he could obtain a private stash of cash by hoarding and then selling a stockpile of valuable baseball memorabilia. According to reports, Dykstra had about $400,000 worth of items that he hid, sold, and destroyed without the permission of a bankruptcy trustee. All of these valuables would have gone towards eradicating his debt.

A U.S. Attorney prosecuted the action, and told the press that Dykstra had attempted to both manipulate and exploit his creditors and the bankruptcy laws. The outfielder allegedly sold an oven, sconces, and chandeliers for about $8,500 in addition to the memorabilia. He originally claimed that he had placed the appliances in a storage unit, but changed his defense when they weren’t discovered there. Court documents also show that a host of baseball bats, gloves, balls, and other collectibles were sold for about $15,000. Dykstra determined that his best defense was a plea bargain, which he negotiated with his lawyer. When asked if he was guilty of the crimes that the prosecution laid out for the court, he solemnly agreed.

Dykstra was indicted in February with 15 counts of bankruptcy fraud, and could now face up to 20 years in prison for his crime. If he is sentenced to less than 51 months in prison, then Dykstra has already waived his right to appeal. He will also face fines, which could escalate up to $750,000. These pricey costs will only add to his mounting debt as he tries to deal with his bankruptcy from his prison cell. Dykstra was still in prison on his grand theft auto charge when the bankruptcy fiasco erupted. He will also need to serve another nine months in a county jail because of his indecent exposure charges.

Dykstra also pleaded no contest to filing a false financial statement at one point. In another instance, police discovered Ecstasy, cocaine, and a synthetic growth hormone in his home. These illegal narcotics could have sent Dykstra to prison with drug crimes as well, but the prosecutors dropped the charges as a part of his plea bargain. In fact, Dykstra was able to avoid 21 charges in court through the use of plea bargains. If you are dealing with a bankruptcy case, it is essential that you list all of your assets accurately and honestly. If you try to hide possession, as Dykstra did, you could end up in prison facing more fines and fees before. Be honest in your bankruptcy, and you will be able to eliminate creditors and move onto the road of recovery.

Related News:

Bankruptcy FAQs

Are you struggling to make ends meet? Do your regular bills exceed your monthly income? If you are having financial problems and it seems like there is no end in sight, you may want to consider filing ...
Read More »

Typical Errors Committed on the Means Test

Whether you are filing for Chapter 7 or Chapter 13 bankruptcy, you will have to complete a means test. This test decides whether or not you qualify for Chapter 7 bankruptcy, and it also factors into ...
Read More »

About Chapter 13 Bankruptcy Repayment Plans

When you file for a Chapter 13 bankruptcy, you agree to draft a repayment plan which you will use to repay your creditors. Many times debtors are required to file their original repayment plan with ...
Read More »