Los Angeles, CA- Former NY Mets player and financial entrepreneur was sentenced to 6 ½ months additional months in jail after pleading to federal bankruptcy charges.
After 12 years with the MLB, Dykstra retired and built a new career for himself as a financial guru, writing a daily stock picking column along with running several privately held companies. But Dykstra got in over his head when he purchased an $18 million mansion from hockey legend Wayne Gretzky that soon fell into foreclosure.
Between the foreclosure and 20 different lawsuits, Dykstra was broke and decided to file for Chapter 11 bankruptcy. While he was going through the process, Dykstra hid assets from the bankruptcy trustee, and sold off sports memorabilia, earning him close to $15,000 in undisclosed income. Federal prosecutors also said he stripped the mansion of valuables such as high-end stoves, sconces and plumbing fixtures, all of which added to the value of the home.
Bankruptcy law requires that all filers honestly disclose their assets and any income they earn. However Dykstra was not honest with the court and was charged with bankruptcy fraud.
Amid other criminal charges which included drug possession and grand theft auto, which stemmed from an elaborate scheme to fraudulently purchase luxury vehicles. Dykstra made a deal with prosecutors; he would plead guilty to fraud and auto theft in exchange for having the drug charges dropped. The prosecutors had asked the court to sentence Dykstra to 2 ½ years in jail.
Dykstra was already serving 3 ½ years for the auto theft and on Monday a court gave him an additional 6 ½ months for fraud, The Los Angeles Times reported.
Bankruptcy fraud is considered a federal crime and the government has very effective prosecutors. People facing federal charges need an attorney who will effectively challenge the prosecution’s case. If you need an aggressive defense, you should contact Los Angeles criminal attorney Robert M. Bernstein immediately to begin building your defense.
- Law Office of Robert M. Bernstein
9595 Wilshire Blvd. Suite 900
Beverly Hills, CA 90212