Wednesday, February 10, 2016

How Lenny Dykstra used TV's Cramer: Update

"Cramer, I am sure, had no knowledge of Dykstra's 'pay to plug' scheme-an arrangement that could well lead to a Securities & Exchange Commission investigation. He was just a dupe..."

How Lenny Dykstra used TV's Cramer: Update

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Jim Cramer, right, host of CNBC´s "Mad Money,´ single-handedly created the concept of former Phillie Lenny Dykstra-as-financial genius, according to a new book, "The Zeroes," by failed financial publisher Randall Lane. (Jerry Lodriguss / Inquirer file; CNBC)
Jim Cramer, right, host of CNBC's "Mad Money,' single-handedly created the concept of former Phillie Lenny Dykstra-as-financial genius, according to a new book, "The Zeroes," by failed financial publisher Randall Lane. (Jerry Lodriguss / Inquirer file; CNBC)

UPDATE: I asked Jim Cramer's office at CNBC about the allegations, by Lenny Dykstra's former publisher, that Dykstra was taking money to promote stocks on Cramer's show and TheStreet.com. Cramer's reponse: "I haven't read the book but as the author, Randall Lane, points out, I knew nothing about this issue. Of course it is terribly disappointing." No reply from Dykstra so far.

EARLIER: TV investor Jim Cramer's "star pupil, ex-baseball star Lenny Dykstra, secretly sold access to Cramer and stock endorsements on TheStreet.com," writes failed financial publisher Randall Lane, in his book,  The Zeroes

From Lane's Daily Beast summary:

"Cramer single-handedly created the concept of Dykstra-as-financial genius.... The former New York Met and Philadelphia Phillie became an investment columnist for TheStreet.com in 2005, after sending Cramer an unsolicited email. For the next four years, Dykstra made stock picks, focusing on 'deep-in-the-money calls'—a way to buy leveraged options—for tens of thousands of followers on Cramer's website...

"Cramer, I am sure, had no knowledge of Dykstra's 'pay to plug' scheme—an arrangement that could well lead to a Securities & Exchange Commission investigation. He was just a dupe...

"Helped by the marketing muscle of TheStreet.com, Dykstra quickly sold roughly $1 million in newsletter subscriptions," while leaving Lane with "hundreds of thousands in unpaid bills" from their prior magazine venture. "In the course of our ensuing legal fight—and then doing reporting for my book The Zeroes—I stumbled across his Cramer-for-sale scheme."  More at Daily Beast here.

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About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, 215.854.5194, @PhillyJoeD. Read his blog posts at http://www.philly.com/PhillyDeals and his Inquirer columns at http://www.philly.com/philly/columnists/joseph-distefano/. Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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