Corporate Con-Artist: Lenny Dykstra?
By Patrick K. Collard – Managing Member & Corporate Investigator
1-888-GOBACK-1 ext. 83 | patrickc@GObackgrounds.com
Former Major League Baseball player Leonard “Lenny” Kyle Dykstra is facing bankruptcy. Not a very interesting story considering these uncertain economic times. However, when digging deeper it appears that Mr. Dykstra is exhibiting all the attributes of a Corporate Con-Artist. I discuss this technique of the Corporate Con on the Due Diligence page of our website.
What is interesting about this case is that Mr. Dykstra is filing for Chapter 11 bankruptcy protection, which is the reorganization of a company, but the judge in the case is considering moving him into Chapter 7 bankruptcy, which would make him personally liable. The judge has been able to see through the smoke and mirrors of Mr. Dykstra’s business affairs where he has represented himself as a stock picker extraordinaire, with allegedly no losses to his portfolios. No losses, but he finds himself in bankruptcy court? The judge is considering Chapter 7 because Mr. Dykstra’s multi-million dollar estate was used as collateral in several business transactions without the presence of home owners insurance while claiming there was insurance. Having no such insurance is fraudulent and subjects him to Chapter 7 bankruptcy proceedings by making him personally liable.
A cursory check of the Financial Industry Regulatory Authority (FINRA) shows no licensure for a one Leonard “Lenny” Kyle Dykstra allowing him to dispense financial advice, but nevertheless that was his “ad-hoc” vocation after his baseball career. It also appears that he never went to college to pursue a business degree, because he was drafted at 18 years of age by the New York Mets. In July 2009, he was touted by Jim Cramer of MSNBC Mad Money for his financial acumen and success. Besides car washes located in Corona, California, his main investment interests were that of the Players Club magazine and charter jet service for athletes, which has currently lost its financial backing. Ironically the Players Club magazine teaches professional athletes how to be financial responsible with their new found wealth.
It should be noted that Mr. Dykstra’s Bentley automobile and his Gulfstream jet were recently repossessed. He has amassed an incredible $4.2 million dollars in credit card debt. He’s claiming his financial difficulties stem from the alimony that he has to pay his ex-wife, Terri Peel.
Update: As of September 1, 2009 the judge has ordered the Chapter 11 bankruptcy to be removed and Mr. Dykstra to be subject to Chapter 7 bankruptcy which will make him personally liable for all debts. A trustee has been appointed. About 4 months ago I actually ran into Lenny Dykstra at a Starbucks in Murrieta, CA, which is about 45 minutes from Corona. I really didn’t recognize him at first and never said anything to him. However, I did notice he sped away in his black Bentley.
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