Former MLB Player Dykstra Sentenced To 6-1/2 Months For Bankruptcy Fraud

by Tara Arick on December 7, 2012 · 0 comments

in Bankruptcy

- From LexisNexis® Mealey’s™ Daily Legal News.

The federal judge in California presiding over the bankruptcy fraud proceeding of former Major League Baseball player Lenny Dykstra has sentenced him to 6-1/2 months in federal prison, a source told Mealey Publications Dec. 4. The sentence was handed down Dec. 3 (U.S. v. Lenny Kyle Dykstra, No. 11-00415, Chapter 7, C.D. Calif.).

Bankruptcy

In 2009, Dykstra filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Central District of California. The case was later converted to Chapter 7 bankruptcy.

In 2011, following an investigation by the FBI, the U.S. government sued him for bankruptcy fraud, concealing property that belonged to the bankruptcy estate and money laundering.

Guilty Plea

In July 2012, Dykstra pleaded guilty to selling baseball memorabilia and other property from his house after he had declared bankruptcy and then lying about it under oath.

Dykstra could have received a prison sentence of 30 months, the source said. Judge Dean D. Pregerson ordered Dykstra to perform 500 hours of community service.

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