Lenny Dykstra, a former professional baseball player, was sentenced to six and a half months when he pled guilty to bankruptcy fraud. Dykstra filed bankruptcy over three years ago after alleging he owed 31 million dollars in debt and maintained $50,000 in assets. Later, we learned of other assets about which he failed to tell the bankruptcy court. Let’s remember, the filing of bankruptcy is supposed to provide welcome relief to the “honest but unfortunate” debtor.
Here, the debtor, Mr. Dykstra, wasn’t very honest. This may be due to alcohol and drug abuse, or his celebrity status. I would like to believe he didn’t omit items from his bankruptcy schedule intentionally, as his indiscretion could be viewed as a flaw in the bankruptcy system.
Another celebrity bankruptcy, that of professional football star, Warren Sapp, recently hit the news as well. Mr. Sapp filed his bankruptcy petition and schedules in Florida. His disclosures did not list his Super Bowl ring. I cannot wait to hear the story on this one. Of course, Mr. Sapp is going to come up with a magnificent story. Let’s just hope he speaks to his bankruptcy attorney before he speaks to anyone else.