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Lenny Dykstra to Plead Guilty to Charges Stemming from Bankruptcy

Lenny Dykstra, the former New York Mets and Philadelphia Philly outfielder, agreed to plead guilty last week in Los Angeles to three federal counts which arose out of a Chapter 11 bankruptcy that he filed in 2009. The three counts to which Dykstra agreed to plead guilty to are bankruptcy fraud, concealment of assets, and money laundering. This is according to a U.S. Attorney’s Office spokesperson.

At the time Dykstra filed for protection under the bankruptcy laws, he stated that he only had $50,000 in assets and owed more that $31 million. According to prosecutors, Dykstra sold, hid or destroyed over $400,000 worth of property that was a part of the bankruptcy estate without the bankruptcy trustee’s permission. The maximum sentence that Dykstra faces is 20 years in a federal prison.

This is why it is so important to discuss all of your assets with your attorney prior to filing for bankruptcy. If you do not tell your attorney about all of your assets, your attorney cannot protect them. Further, you must always inform your attorney prior to the sale, transfer or destruction of any property that you have once you have filed for bankruptcy and prior to getting your discharge in order to avoid serious consequences.