Former outfielder for the New York Mets, Lenny Dykstra, has pleaded guilty to three charges of bankruptcy fraud in Los Angeles. Dykstra was accused of not disclosing all of his assets during his 2009 filing.

The former baseball player could possibly face up to 20 years behind bars for money laundering, bankruptcy fraud, and concealment of assets. In his bankruptcy application, he listed $31 million in liabilities and only $50,000 in assets. However, prosecutors say he illegally sold, hid, or destroyed $400,000 worth of property.

The Sacramento Bee reports that Dykstra was also accused of lying while under oath about what he did with his assets. He is currently in prison for grand theft auto, providing a false financial statement, and indecent exposure.

Filing for bankruptcy can be confusing, making it easy to make mistakes. To ensure mistakes don’t lead to fraud charges, contact the bankruptcy attorneys at the Law Office of Russell Van Beustring, P.C. today at 713-973-6650 to schedule a consultation.

An examiner has been appointed to investigate Residential Capital LLC’s bankruptcy filing under allegations that its pre-bankruptcy transactions with Ally, a company that may buy up ResCap’s assets, were improper.

A bankruptcy examiner, who is usually a bankruptcy lawyer, is typically appointed in cases where fraud, mismanagement, incompetence, and dishonesty are suspected. Warren Buffett’s Berkshire Hathaway Inc. supported an investigation. Berkshire owns most of ResCap’s debt.

Reuters reports that unsecured creditors and ResCap’s lawyers are against the appointment of a examiner, claiming there is already an investigation underway with its creditor committee. They fear an additional investigation will slow down its reorganization plan.

If you are wondering if your business’s debts are eligible for discharge, contact the legal experts at the Law Office of Russell Van Beustring, P.C. at 713-973-6650.