Updating a previous story, former Major League Baseball All-Star Lenny Dykstra was sentenced to six and a half months in prison last week after he was convicted of bankruptcy fraud.
According to the Associated Press, U.S. District Judge Dean Pregerson weighed Dykstra’s “battle with drugs and alcohol versus the crimes he committed and opted to give the ex-big leaguer a lenient prison term.” Dykstra was also ordered to pay $200,000 in restitution.
Dykstra pleaded guilty to bankruptcy fraud, concealment of assets and money laundering earlier this year after prosecutors found out that he was trying to sell baseball memorabilia without approval during his Chapter 11 bankruptcy case. After his filing, Dykstra hid, sold or destroyed at least $200,000 worth of items without permission, the AP reported.
“I don’t think I’m a bad person,” said Dykstra, 49, in court. “I made some bad decisions.”
During his bankruptcy filing, Dykstra claimed to have $31 million in debts and $50,000 in assets.
Dykstra’s case should serve as a notice to anyone thinking about committing bankruptcy fraud. The potential for prosecution is not worth hiding assets. When you sign a bankruptcy petition, you do so under the penalty of perjury. If you file for bankruptcy, regardless of whether it is Chapter 7 or Chapter 13, you need to be as honest as possible with the court and answer all questions about assets truthfully.
Often, bankruptcy is the best way to dig out of a financial hole. Filing for bankruptcy allows you to discharge unsecured debts like credit card debt and medical bills. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.