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Lenny Dykstra, former MLB All-Star, indicted for bankruptcy fraud

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    Lenny Dykstra, former MLB All-Star, indicted for bankruptcy fraud

    May 6, 2011

    Lenny Dykstra, a three-time major league All-Star outfielder who played for the New York Mets and Philadelphia Phillies, was indicted Friday for bankruptcy fraud for allegedly selling items from his $18 million mansion in Ventura County, a federal prosecutor said.

    Lenny Kyle Dykstra, 48, of Murrieta, California, was charged with 13 counts: bankruptcy fraud, obstruction of justice, four counts of concealing property from the bankruptcy estate, three counts of embezzlement from the bankruptcy estate, and four counts of making false declarations to bankruptcy court, according to a statement from spokesman Thom Mrozek of the U.S. Attorney's office in Los Angeles.

    Last month, Dykstra was arrested and charged with bankruptcy fraud, and he was released on $150,000 bond and ordered to seek outpatient substance abuse treatment.

    The indictment is the result of conduct Dykstra allegedly engaged in after filing a bankruptcy case on July 7, 2009, Mrozek said.

    If convicted on all charges, Dkystra could face up to 80 years in prison, Mrozek said.

    After filing for bankruptcy protection, Dykstra allegedly "looted" his Sherwood Estates mansion in Thousand Oaks, California, lied about who stripped the mansion, and denied receiving money for having sold items that were owned by the bankruptcy estate, Mrozek said.

    According to court documents, an attorney hired by the bankruptcy trustee estimates that Dykstra stole and destroyed more than $400,000 worth of property in the estate.

    Among the property that Dykstra allegedly stole were silver- and gold-plated door knobs, gold fixtures, a grandfather clock, two desks, a chair, a Maitland-Smith dresser, chandeliers, electronic equipment, artwork, a stove and a framed piece of sports memorabilia about him, according to the indictment.

    The former member of a New York Mets World Series champion team was arrested last month on what police said was suspicion of fraudulent auto purchases.

    His attorney, Mark Werksman, characterized the case last month as "a scorched-earth bankruptcy proceeding" and blamed the auto-related accusations as a "vendetta" by former caretakers.

    But the U.S. bankruptcy trustee for the central district of California, Peter C. Anderson, described the allegations in Dykstra's case as "egregious."

    "The bankruptcy-related conduct charged in the indictment constitutes an egregious abuse of the bankruptcy system and will not be tolerated," Anderson said in a statement.

    Filed/discharged/closed Chapter 7 in 2010!

    #2
    I am only surprised that it took this long for an indictment.

    Here's what Lenny had to say in 2009 when he filed.

    Go to about 8:40 minutes of the video.

    I guess the trustee saw this too.

    The essence of freedom is the proper limitation of Government

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