Friday, September 4, 2015

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

0 comments
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.

More coverage
 
Gossip with Marnie Hall: Super models come to town
 
PhillyGossip blog: While Platt's Philly mag staffers dish, he dines with Barkley
 
The Insider blog: Why Metro Traffic's Brown is off the road
0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

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

Joseph N. DiStefano
Also on Philly.com:
letter icon Newsletter