Lenny Dykstra Gets Six Months for Bankruptcy Fraud

Posted December 5, 2012 in Bankruptcy Criminal Law by

Baseball star-cum would-be financial magnate Lenny Dykstra was sentenced to six-and-a-half months in prison this week for hiding assets from his bankruptcy estate.

Dykstra, 49, agreed to a plea deal in July after his bankruptcy trustee discovered that he had taken up to $400,000 in memorabilia and household goods from his estate while bankruptcy proceedings were ongoing.

The former Mets and Phillies centerfielder filed for bankruptcy in 2009, when he admitted to owing up to $25 million while only possessing $500,000 in assets. After he retired from baseball he had attempted to start a second career as a financial guru for athletes.

As part of his fraud sentencing, Dykstra will also have to perform 500 hours of community service and pay $200,000 in restitution.

The judge originally handed down a 14-month sentence but changed his mind when he considered that Dykstra had already been sitting in federal prison for seven months waiting to learn his fate.

The prison term will be served concurrently with a term that Dykstra, known as “Nails” during his playing days, is already serving for grand theft auto and false financial statements.

U.S. District Judge Dean Pregerson could have imposed a sentence of as much as 20 years, but fell on the side of leniency. “There’s just a sort of spectrum of conduct I can’t understand,” Pregerson said in court, according to CBS News. “What I am trying to understand is: Who is Mr. Dykstra?”

The ball player had already seen a number of drug charges tossed out as part of his car theft plea deal, and is also facing a nine-month sentence for indecent exposure toward a woman he was interviewing to be his housekeeper.

“I don’t think I’m a bad person,” Dykstra said. “I made some bad decisions.”

 

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