Saturday, July 14, 2012

Headline: Baseball great pleads guilty to bankruptcy fraud

From the Associated Press via the Atlanta Journal-Constitution: Baseball great pleads guilty to bankruptcy fraud.

It is a federal crime to conceal assets in a bankruptcy case. Most intentional fraud probably operates at a low level, such as when smaller assets are undervalued or not listed, perhaps with the intention of claiming that they belong to someone else. And there is no doubt that assets are often forgotten or undervalued unintentionally. But when someone like Lenny Dykstra lies about the location or sale of his property, as I understand this story to say, then a routine bankruptcy case turns into a serious criminal prosecution.