[UPDATED with Indictment:] Lenny Dykstra's Spectacular Fall Continues

Categories: Crime-iny, Sports

UPDATE, MAY 9, 11:22 A.M.: Lenny Dykstra, the former major leaguer out of Garden Grove, could get up to 80 years in federal prison if the numerous bankruptcy fraud counts against him stick.

That's disclosed in an announcement of a federal grand jury indictment accusing Dykstra of bankruptcy fraud for allegedly selling items from his $18 million mansion in Ventura County.

Here is a copy of the latest statement from the U.S. Attorney in Los Angeles:

May 6, 2011

Former Baseball Player Lenny Dykstra Indicted by Federal Grand Jury in Bankruptcy Fraud Case
LOS ANGELES--Lenny Dykstra, an All-Star outfielder who played for the New York Mets and Philadelphia Phillies, was indicted today by a federal grand jury that accused him of bankruptcy fraud for allegedly selling items from his $18 million mansion in Ventura County.

Lenny Kyle Dykstra, 48, who was known by the nickname "Nails" and is currently residing in Murietta, California, was named in a 13-count indictment returned this afternoon.

The indictment accused Dykstra of one count of bankruptcy fraud, one count of 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 the Bankruptcy Court.

The indictment is the result of conduct Dykstra allegedly engaged in after filing a bankruptcy case on July 7, 2009. The indictment alleges that after filing the bankruptcy protection, Dykstra looted his Sherwood Estates mansion, lied about who stripped the mansion, and denied receiving money for having sold items that were owned by the Bankruptcy Estate.

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.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.

All of the charges in the indictment carry a statutory maximum penalty of five years in federal prison, except for obstruction of justice, which carries a potential sentence of up to 20 years in prison. Therefore, if he is convicted of all 13 counts in the indictment, Dykstra would face a maximum possible penalty of 80 years in prison.

Dykstra's bankruptcy case is still pending in United States Bankruptcy Court in Woodland Hills.

The investigation in the bankruptcy fraud case was conducted by the Federal Bureau of Investigation and IRS - Criminal Investigation. The United States Trustee for the Central District of California (Region 16) provided substantial assistance during the investigation.

"The bankruptcy-related conduct charged in the indictment constitutes an egregious abuse of the bankruptcy system and will not be tolerated," stated
Peter C. Anderson, U.S. Trustee for Region 16. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

UPDATE, APRIL 26, 11 A.M.: The lawyer for Lenny Dykstra is denying rampant media reports that Charlie Sheen bailed the embattled former Major League Baseball star out of jail.

Meanwhile, the hits keep coming against the former New York Met and Philadelphia Philly facing federal fraud and local grand theft charges: a woman who answered a Craigslist ad for a housekeeper earlier this month says he arrived at Dykstra's home to find him totally naked and wanting to sample her massage techniques.

"Alas, the story has no happy ending," Howard Gensler writes in the Philadelphia Daily News.

Sexual creepiness has been alleged against Dykstra before. In December, a female escort accused him of bouncing a $1,000 check. A month later, the ballplayer-turned-financial-whiz kid faced sexual assault allegations by his former housekeeper, who claimed that one of her duties involved blowing him weekly.

Because she needed the money, she claimed, she went along, prompting Gensler to point out, "Lenny always could get to third base."

Meanwhile, Dykstra's exceedingly busy attorney tells the New York Daily News' Nancy Dillon that there is no truth to reports his client was bailed out by Sheen.

"Charlie Sheen has absolutely nothing to do with posting the bond in the federal case," Mark Werksman reportedly said. "He's a friend and supportive of Lenny, but there's simply no truth to this rumor."

TMZ.com reports that rumor came directly out of the mouth of Sheen, who reportedly said, "The rendition-guilty trolls that kidnapped my dear friend Nails clearly forgot that he's a fellow Vatican assassin and his best pal is a warlock."

Sure sounds like Sheen, who was reported elsewhere online to have paid $22,500 to spring Dykstra.

"It's preposterous," Werksman tells the Daily News.

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