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Wednesday, July 8, 2009

UPDATED: Phillie-turned-would-be stock-option guru Lenny Dykstra owes more than $10 million to JPMorgan Chase, Bank of America and other creditors, and owns less than $50,000 to pay them with, his Los Angeles bankruptcy filing says. NEW: Read Dykstra's bankruptcy filing

"Sometimes the difficult decisions in life are the most necessary," Dykstra wrote me in an email. "In the end, the restructuring will definitely be a good thing." Yes, he's filed for voluntary Chapter 11.

A good thing, for whom? Dykstra owes, among others:
$12.9 million, unsecured, to Washington Mutual (now part of JPMorgan Chase & Co.)
$4.2 million, unsecured, to Bank of America's Countrywide and credit card units
$3.5 million to Rockbridge Bank, Atlanta, Ga.
$2.5 million to David and Teresa Litt, real estate pros in Calabasas, Calif.
$1.5 million to K & L Gates LLP, a Santa Monica law firm
$1.1 million to United Commercial Bank, San Francisco
$962,000 to private-jet companies in New York, Cleveland and California
$512,000 to the California state labor department's enforcement unit

And hundreds of thousands more, each, to celebrity lawyer Daniel Petrocelli, New York literary agent David Vigliano, California anaesthesiologist Dr. Festus Dada, former publisher Doubledown Media, Index Investors, Wachovia Securities, and more. And smaller amounts to New York's Carlyle and Jumeirah Essex hotels, Verizon, UPS, AmEx, Citibank, and other private-jet companies. Tho nobody in Philly.

Just last week, Dykstra was still soliciting $995/year subscriptions to his newsletter at www.nailsinvestments.com, after his column was dropped by Jim Cramer's TheStreet.com. "Nails" claimed he had a record of better than 100-0 in stock options calls. Tho he ignored my request to prove it. Readers who complained about his claims said such results would only be possible, and still not much, if he'd kept counting performance until the blue-chip stocks he mostly bet on finally rose, instead of admitting defeat when his contracts expired underwater. Like the stopped clock that's still right twice a day.

Which just raises the old question: If he's so smart, how come he's not rich?

ESPN report here.

Posted by Joseph N. DiStefano @ 12:47 PM  Permalink | 56 comments
56
Comments   
Posted 01:06 PM, 07/08/2009
p-diddy
Finally, some verifiable truth on this story. Dykstra is a liar.
Posted 01:27 PM, 07/08/2009
G
Just as big a dirtball as Jim Cramer.
Posted 01:32 PM, 07/08/2009
Shabba Rommel
Whoa. Nails really screwed himself...but hey, he's not alone. Millions of people did the same and have yet to come to terms with it. Only Nails did it to the tune of millions. I don't know if he is a liar or not, but he certainly is delusional and anyone he owe's money to shares some blame as they should have done a better job investigating his sharade.
Posted 01:40 PM, 07/08/2009
pajamas
Some people, Dystra included, are so completely full of it. A couple of weeks ago, while being interviewed in a sparcely furnished home he couldn't afford, he relayed to the reporter that, despite all outward signs, everything was OK. What fantasy world do these folks live in?
Posted 01:47 PM, 07/08/2009
jeannie182003
He lost me as a fan when he spit on nurses in the hospital emergency room after a game sustained injury. What a tough guy. If I ever run onto him, I'll spit in his lying face.
Posted 01:50 PM, 07/08/2009
thomas jordan
people should stick to what they know
Posted 01:51 PM, 07/08/2009
yahmpy
Lenny's always right in Dykstra World.
Posted 01:53 PM, 07/08/2009
Ashburn072
Just disgusting greed.. Dykstra made millions as a ballplayer and could have lived a very comfortable post-baseball life off his car washes, baseball pension, life savings and supplementing his income through card shows and other baseball related public appearances. Bleeping Idiot~
Posted 01:55 PM, 07/08/2009
The-Roof-Is-On-Fire
That's funny. Just last week he said everything was okay and he was telling everyone to go F themselves. Did he do work for Fumo???
Posted 02:02 PM, 07/08/2009
crustymcd
We still love ya Nails - good luck
Posted 02:11 PM, 07/08/2009
rmw38
He got what he desrved. He was, is now, and always will be an egotistical bully.
Posted 02:12 PM, 07/08/2009
kspiegs
Another lying, roid head? Shocker
Posted 02:14 PM, 07/08/2009
cote32
How the mighty have fallen, what a shame, but he has only to blame himself!!
Posted 02:22 PM, 07/08/2009
B in DC
I think Pajamas is talking about the HBO story from Real Sports. If you haven't seen it, it should be On Demand. Dykstra's a trip. Not sure who's worse, him or Dutch...though at least Dutch doesn't owe his flight attendant something like $11k.
Posted 02:22 PM, 07/08/2009
B in DC
I think Pajamas is talking about the HBO story from Real Sports. If you haven't seen it, it should be On Demand. Dykstra's a trip. Not sure who's worse, him or Dutch...though at least Dutch doesn't owe his flight attendant something like $11k.
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About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column, which is printed in the business pages of The Philadelphia Inquirer every Sunday, Tuesday, Wednesday, Thursday and Friday. Joe has worked at the Inquirer, mostly, since 1988. He has also written for Bloomberg and Gannett, authored the book Comcasted, majored in economics at Penn, and fathered six children. Reach Joe at 215-854-5194 and JoeD@phillynews.com